A lot of people lost their jobs because they never had what is considered an actual profession in China in the first place, you are viewing this whole thing in the western standpoint where people living pay check to pay checks. if you get into touch with the actually mandarin society, the problem was never somebody losing their job/jobs, first thing first being NO PARENTS will send their kids to a "补习班" that does not have actually registered teacher with at least “教师资格证” and that's not working for a public school, as the whole point is to improve their kid's exam score. and the more renowned a teacher from one of these business is, the more these parents will likely to pay , as majority of the old generation believes in a quote that's called "不能让孩子输在起跑线上-Don't let kids lose at the starting lineA lot of people lost their jobs overnight because of an abrupt policy change. Is it too much to expect the government to not kill an entire profession without having some policy ready to cushion the blow?
", also, as majority of the older generation still believes that a diplomat from a prestige college is more important than actually quality of the education. this entire mindset was due to the huge population and lack of educational resources back in the early 2000s, the current “应试教育” educational system is the fairest system government can come up with under the circumstance. so, this is not an industry in your imagination, majority of these teachers will just stop doing their "副业" and go back to focus on their day job at public school.
And other schools focused on things like dancing, arts are not included in the policy change, this whole policy was targeted to reduce stress on the society, while making sure the system is still fair to everybody. This is what happens when you spend majority of your time in the English sphere of influence but ignore the basic demands of the average Chinese in their own mindset
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