Killshot

Your loss is our gain, China.

The Chinese government just started a massive crackdown on its own Ed-tech industry. The existing Ed-tech firms have been subjected to a lot of financial pain by the move and the upcoming ed-tech startups have been told they can never go public, be for-profit or basically make any money off of it.

Now, why'd China try to crack down one of its most up and coming and already massively valued industries (somewhere around 100 Billion $), the answer is a bit tricky.

What you may be looking at is the annual exam "gaokao" which is used to get into prestigious undergraduate colleges, not very different from the JEE or NEET. It is a matter of immense prestige for you to have cracked the gaokao amongst so much of competition and parents (of course) take immense pride in it. At the center of all this controversy stands gaokao. What the government claims is the reason why they "had to" pull this move is exploitation. 

Yes, exploitation. The  Chinese communist regime very sternly said that what ed-tech companies are doing with something as fundamentally important as education is simply unacceptable to them and they'll have no piece of this, no sir they wont. They'll not have their comrades exploited of their wealth by these greedy ed tech giants who are profiteering off of parents and childrens' aspirations alike by charging sky high prices for their gaokao tuition.

Although... at one hand the regime is considerate enough of their comrades to not have them exploited by capitalism and on the other hand, we all know China follows pure capitalism, their are private entities everywhere, billionaires produced like Parle-G and their are mega-giants as well, something that the Chinese regime is recently not very fond of(I hope Jack Ma's doing fine👀) however much they'd like to claim its socialism with "Chinese characteristics" it is, indeed capitalism.

Well then why Ed-tech specially, why the worry for comrades only especially when it comes to the Gaokao charges??

The reason might be this guy right here,

Ah yes, the hard working Blue collared man, the cornerstone of any economy. Although what might be happening scarily soon in China is the shortage of these blue collared job seeking men and women. China rose to power with just them, cheap, readily available labor for manufacturing almost anything. This was their way into prosperity, this is China, India is Agrarian, China is the manufacturing hub. 

Now, there are always economic cycles at play, basic economic theories. Such as, when your nation has uplifted itself using manufacturing and the people can see the change around them, a funny little capitalistic thought settles in, like "Hey, look at my country with skyscrapers and my rich billionaire bosses, good for us. Now how about I ask my wages to be increased or I don't show up to work anymore😁"

With prosperity came the wage increase as well, people are educating themselves, living a better quality of life and many more positives. Although now, at the helm of all things communist, the worker of  China, is getting a little expensive to hire, which is why many companies are diversifying their manufacturing, India, Philippines, Vietnam and Bangladesh are a few of the beneficiaries.

Coming back to why edtech took the axe, for the Chinese communist regime to stay in power and fundamentally "Communist" it needs its workers, and if everyone in China wants their kid to take the Gaokao and be a successful person with no blue collar, now that's exactly what calls for a good ol' crackdown💪. 

Well, this is of course just a "Greedy capitalist theory". Do your thing, China. Although the mega billionaire giants and bosses that had bet on China's edtech, have also invested handsomely in Indian one. Now that the world's highest population of Young aspirants is unavailable to do business with, Onto the next one. I wouldn't be surprised if Chinese billions find their way into Indian ed-techs, something that was already happening. Whatever helps us🙆😉