Lesson for market, hope for society

Speaking on conditions of anonymity, an investor close to online education leader VIPKid said the company is considering expanding its business to adult English tutoring. VIPKid currently offers kids aged 4 to 12 one-on-one online English courses with teachers based in the United States.

Gaotu Group launched a new version of its mobile app covering language training, college student examinations, finance, public examinations, teaching, studying abroad, certain types of vocational education services, and a family education system class.

"It is the darkest moment for us but it also can be a good moment. We must adjust to survive," said Chen Xiangdong, founder of Gaotu, in an internal letter at the end of July that also announced some layoffs are inevitable－a euphemism for downsizing by a third, which translates to several tens of thousands of job cuts.

Yuanfudao launched a science education product whose Chinese name translates to Pumpkin Science. This move is in line with a key transformation direction for education firms－STEAM education, an acronym for science, technology, engineering, arts and mathematics.

Pumpkin Science enables kids to explore science in a hands-on way with interactive AI content. Ma Bin, head of Pumpkin Science, said the main aim is to empower kids to explore living knowledge themselves.

Doushen (Beijing) Education & Technology Inc announced it will promote comprehensive business transformation and shift to non-curricular services such as after-school programs and art classes.

Chu Zhaohui, a researcher with the National Institute of Education Sciences, however, said uncertainty arising from the recent guideline will likely continue to cloud China's education and training industry for some time to come.

"The form of after-school tutoring may be changed, but as long as demand does not decrease, off-campus training institutions may continue to exist," said Chu. "Now, it's like the first domino has overturned. It remains to be seen to what extent the policy will affect the whole industry."