Understanding China’s Double Reduction Policy on Educational Economy

In July 2021, the Chinese government released the “Opinions on Further Reducing the Burden of Homework and Off-campus Training for Students in Compulsory Education” (hereinafter referred to as “Double Reduction” policy) at all levels of schooling in compulsory education system – including high schools, and offcampus education and training institutions – which were strictly implemented according to the policy. This paper briefly describes the impact of China’s recent double reduction policy on the educational economic and evaluates its implementation process from macroeconomic perspective, by analyzing the private after-school and smart education industry, and by gaining an insight into the purpose and impact of the China’s intention on private tutoring firms. It concludes that the “double reduction” policy has a complex and far-reaching impact on China’s educational economy and on the related job market, as well as on the distribution of the family income and on education-relevant expenses, which is mainly reflected in family education costs. The findings also demonstrate that the smart education industry has rapidly grown after the launch of the policy.