Skip to content
Subscriber Only

Under Siege, China EdTech Giants Take Steps to Curb Fallout

  • From TAL to Yuanfudao, firms are scrambling to comply
  • A $100 billion industry is struggling to figure out next steps
Bloomberg business news
WATCH: China’s largest private education firms are moving swiftly to adjust to a harsh new reality after Beijing launched a sweeping crackdown on the $100 billion sector. (Source: Bloomberg)
Updated on

China’s largest private education firms are moving swiftly to overhaul their businesses to adjust to a harsh new reality after Beijing launched a sweeping crackdown on the $100 billion sector.

Two of the sector’s biggest names have in past days reached out to reassure investors and managers their businesses remain viable and won’t abruptly collapse, according to people familiar with the matter. Yuanfudao, the $15.5 billion startup backed by Tencent Holdings Ltd. and DST Global, plans to yank all advertising after already curtailing part of its marketing earlier this year, one of its largest expenses, the people said, asking not to be identified talking about a sensitive matter. But the startup also said it has ample cash on hand to sustain its business, one of the people said.