Blog / How to Expand Your Education Business to China

How to Expand Your Education Business to China

A Practical Guide for International Schools, Universities, and EdTech Ventures

In China, households spend an average of 17.1% of their annual income and 7.9% of their total annual expenditures on education, surpassing Japan, Mexico, and the U.S. (1–2%).

Expanding a business to China can be complex, particularly with 2025’s geopolitical risks and a slowdown in economic growth. These challenges can create uncertainties for any organization, especially those in more regulated sectors such as education – including international schools, universities, EdTech and online learning platforms – that have to navigate cultural and academic regulations on top of other requirements for foreign-owned businesses in China.

Despite obstacles, China’s growing middle-income population and prioritization of global academic standards present lucrative opportunities for educational institutions. These institutions have to bear in mind that localizing their offering requires careful attention to licensing requirements, cultural nuances, and digital infrastructure. Education businesses have to therefore approach these hurdles strategically if they’re looking to establish a foothold in a market where demand for high-quality, internationally recognized education is poised for continued expansion.

In this guide, we’ll walk you through why China’s education market is so attractive and share key considerations for setting up a successful presence. You’ll also learn how to address one of the biggest operational hurdles: ensuring your website and digital platforms load and function in China – as many do not.

Disclaimer: This guide is informational and does not constitute legal advice. Chinafy is not a legal or corporate advisory entity, and given that every business is different, we suggest consulting with your internal legal counsel if you would like advice on any legal or compliance-related concerns, or alternatively, we can connect you with one of our partners.

TL;DR

Massive EdTech opportunity: China’s education market, particularly EdTech, presents a potential $133+ billion opportunity, supported by a tech-savvy middle-income population prioritizing quality learning.

Regulatory complexity: Foreign institutions have to navigate strict ownership limits, potential Variable Interest Entity (VIE) structures, and varying licensing requirements (e.g., Internet Content Provider (ICP) license for onshore hosting).

Strategic localization: From bilingual curricula to cultural tailoring, businesses in the education sector need to localize thoughtfully for credibility in the Chinese market.

Importance of partnerships: Collaborations with local institutions, government initiatives, or established industry groups can streamline market entry and bolster credibility.

Adapting to China’s internet environment: Many global websites and online portals face loading or functional issues in China due to blocked or slow third-party resources. Chinafy can help optimize website speed and functionality without necessarily requiring a separate Chinese entity or ICP license.

Why consider China for your education business

China’s education sector is experiencing rapid growth and transformation, particularly in the EdTech space which is forecast to maintain a CAGR exceeding 6% through to 2028. Here’s why:

Huge student base

With millions of students aiming for international exposure and qualifications, the demand for foreign curricula, dual-degree programs, and study-abroad pathways is massive. This appetite spans K–12 education through to professional upskilling and vocational training, creating multiple avenues for both traditional and innovative offerings.

Government support

China’s central government prioritizes educational development and partnerships with reputable global institutions, supporting initiatives that introduce international teaching standards and curricula. However, it’s also important to be aware of evolving policies, such as a 2021 enforcement aimed at limiting private tutoring, that underscore the need for ongoing regulatory awareness and flexibility.

Growing middle-income population

China’s expanding middle-income population is investing significantly in education, from after-school tutoring to international exchange programs, creating ample opportunities for innovative products and services. Parents are known for prioritizing quality education, and many are embracing digital solutions to give their children a competitive edge.

Technological advancements

Rapid digitization in China has opened new doors for EdTech players. The adoption of e-learning, AR/VR-based teaching, and AI-driven educational tools is accelerating. Blended learning models, combining offline classrooms with online platforms, are increasingly popular, fueling demand for interactive, live-streamed courses and personalized study plans.

Key market entry considerations

1. Understanding the regulatory framework

Licensing & accreditation:

Different types of educational institutions (e.g. language schools, international K–12, higher education, or vocational training) face varying degrees of regulatory scrutiny. For more information on this, you should seek legal advice specific to your organization.

Strict foreign ownership limits & the VIE workaround:

China imposes strict foreign ownership restrictions on certain sensitive industries, including much of the education sector, particularly K–12. As a result, foreign investors often turn to a Variable Interest Entity (VIE) structure to raise capital and maintain operational control without direct ownership. However, the VIE model comes with notable legal, regulatory, and operational complexities, especially in an environment of heightened scrutiny on the education industry. Any policy shift in China could potentially impact the enforceability of VIE agreements, making education-based VIEs a more sensitive and higher-risk investment vehicle.

For businesses operating in these restricted sectors, the VIE framework is typically the only strategy to secure foreign capital while retaining control. Yet, due to evolving regulations, institutions relying on VIE structures must stay vigilant, regularly revisiting their compliance strategies and legal agreements. It’s also possible that a VIE’s local Chinese entity will be the one to hold an ICP license or arrange onshore hosting, but this arrangement can carry additional oversight and documentation requirements.

ICP license (if hosting onshore):

If you decide to host your website in mainland China, an Internet Content Provider (ICP) license is mandatory. This is an essential step if you want to establish a fully localized website presence within China’s borders.

Entity setup: 

Setting up a Wholly Foreign-Owned Enterprise (WFOE) or joint venture can be complex. Regulatory requirements differ by province and by type of institution. Legal structures can take time to finalize, so plan ahead and seek professional guidance. Meanwhile, if you’re considering a VIE structure to navigate restrictions, factor in the possibility that local partners, banks, and regulators will scrutinize how the VIE is managed, which can affect your overall timeline and operational strategy.

2. Localization and cultural nuances

Curriculum & language: 

If you’re targeting K–12 or university-level programs, consider bilingual delivery (English-Chinese) or Chinese-language support. Curriculum adjustments might be necessary to align with local standards, especially in technology-driven courses involving AI or STEM subjects.

Cultural relevance: 

Tailor course materials, marketing messages, and support services to Chinese cultural values and learning preferences. Chinese parents, in particular, place great importance on recognized credentials and proven outcomes.

Local teaching staff: 

Hiring local educators who understand pedagogical norms and cultural expectations can significantly enhance your program’s credibility and appeal. They can also help you adapt to evolving trends, such as live-streamed classes or interactive mobile learning, which resonate with students accustomed to tech-driven experiences.

3. Forming strategic partnerships

Collaborate with local institutions: 

Partnering with established Chinese schools, universities, or private training centers can help you navigate regulatory barriers and tap into existing student networks. In the EdTech realm, linking with local tech giants or digital education platforms may also fast-track user acquisition and brand awareness.

Industry alliances: 

You may also find it beneficial to join industry associations or international chambers of commerce that focus on education. This can provide key market insights, networking opportunities, and policy updates, which are essential in a landscape where policy shifts can change the rules of the game overnight.

Government & corporate sponsorships: 

Explore public-private partnerships, such as government-funded educational initiatives or corporate-sponsored training programs, to expand your reach and credibility. As China’s EdTech sector continues to attract investment, these collaborations can help you to differentiate your offering.

4. Building a strong digital presence in China

Even if you open a physical campus or partner with local institutions, your online footprint is critical for recruitment, branding, and ongoing student engagement. However, websites and portals that work smoothly elsewhere can face significant performance challenges in China.

Why websites load slowly in China

Blocked or slow third-party resources: Services like Google APIs, YouTube videos, and hundreds of lesser-known third-party resources are restricted, causing severe loading delays.

Infrastructure limitations: Hosting your site outside of China, even with a global CDN, can introduce high latency, as data has to travel further to get to the end user in China.

Read about how Chinafy helped Chinese International School in Hong Kong halve their site loading time for alumni, parents and students in China.

Testing and optimizing your site

Before making any changes, run speed tests from within China to see how your site performs. If you discover performance issues, consider the following:

Use a China-compatible CDN: Some content delivery networks have PoPs in mainland China (e.g., Tencent Cloud, EdgeNext, Alibaba Cloud) but typically require a local business entity and ICP filing. It’s also important to note that CDNs alone cannot solve all performance issues, as they won’t accelerate third-party resources that are blocked in China.

Minimize slow or blocked resources: If you’re tailoring your site to a China-only audience, it makes sense to remove or replace resources that come from too many slow or blocked domains. This can improve loading speeds and ensure your site remains functional. However, if you’re using your existing global site, doing this would be detrimental to global visitors, and equally, the way third-party resources work in China differ and evolve over time so there is no one-off list or means to edit these resources. Changes will likely have to be made on an ongoing basis.

Consider onshore hosting: Hosting in China can be beneficial but comes with regulatory obligations like setting up a local entity and obtaining an ICP license. Also, like with using a China CDN, hosting your site in China doesn't automatically make it work there. It’s still necessary to optimize your website for third-party dependencies, content compliance and user experience.

Chinafy: Make your website run fast and fully in China

Chinafy offers an agile approach for both companies with either an onshore or offshore presence. Chinafy optimizes your existing site for Chinese users without necessarily requiring local hosting.

How Chinafy helps websites load fast and fully in China:

Removes, replaces or optimizes third party resources: Chinafy combines both in-person and platform-level features to detect and replace blocked or slow resources that cause loading delays.

Leverages a China-friendly CDN: Speeds up content delivery with an onshore CDN or near-China CDN depending on whether your business meets certain pre-requisites.

Requires minimal IT involvement: Typically takes only a couple of weeks to implement and maintain both global and China-specific performance in parallel.

This can be a game-changer for educational institutions that depend on their website for student recruitment, e-learning delivery, or cross-border collaboration—without building a separate China site.


Expanding an education business to China, be it a university branch campus, international K–12 school, or EdTech platform, offers lucrative opportunities to tap into one of the world’s largest and fastest-growing education markets. However, success hinges on a well-rounded strategy:

Comply with regulations: Work with trusted advisors to secure licenses and handle legal structures.

Localize thoughtfully: Adapt your curriculum and marketing for Chinese audiences without compromising academic standards.

Form partnerships: Collaborate with local institutions, industry groups, and government-sponsored programs.

Optimize your website: Ensure your online portals and websites load quickly and reliably in China, either by using onshore solutions or Chinafy, the only solution that can achieve near-native performance even if you choose to remain offshore.

Whether you’re launching an international school, forging university research ties, or introducing cutting-edge EdTech solutions, a careful approach and strategic planning will help your organization make the most of the incredible opportunities China has to offer.

The insights shared in this article are based on our research, observations, and experiences at the time of writing. They are intended to inspire ideas and foster conversation, not to replace professional consulting advice tailored to your unique situation. Always consider your specific needs before making business decisions.

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