Tightened Regulations on Education Industry in China: Reasons, Challenges, and Solutions

China has framed tough new rules for the industry, aiming both to ease pressure on school children and boost the country's birth rate by lowering family living costs. However, the policy crackdown also dealt a severe blow to the private sector, the public schools, and the families. In this paper, we analyze the necessities of carrying out the tightened regulations and examine the contents of the policies. We then identify the challenges brought by the policy shocks and propose some measures to deal with the challenge.