By Mark Schaub and Tom Shi, King Wood & Mallesons
The Regulations on the Implementation of the Law of the People’s Republic of China on the Promotion of Privately-run Schools (2021 Revision) (“Regulation”) will be effective from 1st of September 2021. The Regulations provide supporting measures to Chinese private schools including financial subsidies, tax incentives and security in respect of land but this comes with greater scrutiny and limits on their operations.
The Regulations also intend to tighten rules on compulsory education and explicitly ban VIE (Variable Interest Entity) structure. Most British schools with a presence in China do so by way of a licensing model. The Regulations will have less of a direct impact on such British schools.
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