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51Talk: Navigating China's New Tutoring Policy
On July 24, 2021, Chinese authorities issued the Double Reduction Policy to ease the burden of excessive homework and off-campus tutoring for students undergoing compulsory education in China. Off-campus English tutoring became strictly regulated, and hiring foreign teachers abroad to carry out training activities was strictly prohibited. 51Talk had achieved great success in the K-12 English online tutoring market, and this business accounted for more than 95 per cent of the company's total revenue. However, the company would not be able to continue its K-12 student English online tutoring business in the Chinese market under the Double Reduction Policy. Jack Huang, 51Talk's founder and chief executive officer, had to consider how to transform the company in order to survive.