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New Mainland China Official Government Opinion on the Off-campus Tutoring Education Sector—Implications for VIE Structures in This Space? | Akin Gump Strauss Hauer & Feld LLP

New Mainland China Official Government Opinion on the Off-campus Tutoring Education Sector—Implications for VIE Structures in This Space? | Akin Gump Strauss Hauer & Feld LLP
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New Mainland China Implementation Rules for the Law for Promoting Private Education – Implications for Investments into VIE Structures? | Akin Gump Strauss Hauer & Feld LLP

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On May 14, 2021, the People’s Republic of China (PRC) State Council announced the Implementation Rules for the Law for Promoting Private Education (“Education Sector Implementation Rules”). These measures which contain various detailed provisions on the operational and governance aspects of education are part of China’s ongoing efforts to further regulate and streamline the provision of private sector education. The Education Sector Implementation Rules also effectively prohibit China-based foreign-invested enterprises and enterprises controlled by foreign parties from participating in the provision of compulsory education (being that provided in years K-1 to K-9 (“Compulsory Schooling”)) in mainland China (the “Mainland”) with effect from September 1, 2021. The Education Sector Implementation Rules also contain a prohibition, from the same date, on the use of mergers and acquisitions or contractual c ....

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