(WSJ) China is preparing to issue more than a dozen licenses to education companies seeking to offer after-school tutoring.
The tutoring firms will be required to operate as non-profit, while earning from related operations such as tutoring adults for professional tests.
Approved education firms will only offer tutoring services to learners in ninth grade and below under the new guidelines.
The licensed companies will be mandated to create a nonprofit foundation that manages after-school tutoring proceeds, with the announcement expected later in the month. The government also aims to set a price limit for after-school tutoring charges.
The announced guidelines come after weeks of discussions with the tutoring companies and brings some certainty on the sector which came at the brink of collapse on Chinese crackdown.
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