China Investment Roadmap - the Education Sector - Preview

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China’s massive education industry has not lacked for publicity in recent years. Spurred by its
explosive growth and the strikingly high test scores that come out of the country, education
in the Middle Kingdom has both been a model that foreign governments have attempted
to emulate, and a sector that foreign companies have been eager to invest in – and with
good reason. Although China undeniably has a strong domestic base for education that
is the envy of many other countries, there are numerous niche sub-sectors that overseas
educators are well placed to tap into and a great appetite for foreign expertise.
But while there are various gaps in China’s education market that foreign education
providers could fill, the industry has consistently remained one of the country’s most
restrictive for foreign direct investment (FDI) since its opening up period in the late 1970s.
In China’s Catalogue for Foreign Investment, FDI into education can alternately be defined
as encouraged, restricted, or prohibited depending on the area of investment, highlighting
how sensitive the industry is still considered by the Chinese Communist Party.
In this issue of China Briefing, we navigate through China’s regulatory framework for
investment into education, presenting a roadmap for best practices in the industry. We
examine the key market information that has driven the industry’s growth, analyze the
different investment models that are available for foreign companies, and finally discuss the
effect that China’s recently released NGO lawwill have on foreign investment into education.
There are an abundance of opportunities for foreign involvement in China’s education
industry, but a return on investment can only be realized with a firm prior understanding of
the market environment and the selection of an appropriate investment vehicle. We hope
that this issue of China Briefing will help put your company on the right path.
This Month’s Cover Art
胡同中的童年(张国宁)
Zhang Guoning
Oil on canvas, 50x61CM
Wan Fung Art Gallery
wanfung@12 .cn
+86 0760 8333 861
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Introduction
With kind regards,
Alberto Vettoretti