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China’s education sector has large potential with strong growth momentum.
Sizable opportunity
With the largest population in the world, Chinese economy growing approximately 10%
annually, improving disposable income and increasing share of education expenses of total
consumer spending, the overall demand for education in China is enormous.
Market expected to grow to 4% of GDP by 20101
The second largest item of household spending—14% of consumer spending2

Sources: Global Education Digest, UNESCO Institute for Statistics 2007; China’s Ministry of Education, National Bureau
of Statistics of China
Strong cultural emphasis on education in China
Traditional Chinese ideology of Confucianism puts great emphasis on education. In addition,
Chinese households are willing to invest in children’s education as most households have only
one child.
Large but underserved Chinese education market

Sources: US National Center for Education Statistics; US Dept of Labor; Ministry of Education - Chinese National Bureau
of Statistics
Emphasis on higher education
Higher education is generally considered as the pre-requisite for better employment
opportunities and higher income in China
Only 12% of K-12 students in China receive vocational training vs. 39% in the US
One third of Chinese college graduates cannot find a job within the first year of
graduation. There is a mismatch of skill-set learned at school vs. requirements at work.
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