As coronavirus spreads, homebound Chinese students spark online Ed-Tech boom

China is on lockdown and the world is watching developments regarding the coronavirus in real time. Yet amidst the fear and panic, there is a startling consequence: Students and workers who are effectively captive behind closed doors are going online in droves. The result? New innovation and growing demand for a new way of learning and working. A catalyst, perhaps, for the way we interact in a global economy that demands greater sustainability.

Movies and games have prepared us to prepare for the spread of the deadly coronavirus, which has a similar death rate to relatively potent seasonal flu variants. While the rest of the world waits for news, and scientists are working on a possible vaccine, the Chinese are largely confined to their homes. Indeed, the apprehension of the coronavirus has already caused a retail slowdown sector, with many stocks trading lower.

Transportation has virtually stopped and almost all factories and stores have closed. With huge numbers of people across China unable to leave their apartment complexes at will, one would expect widespread annoyance. However, Chinese software companies are rising to meet people’s needs, creating a boom in electronic technology and networking platforms.

Don’t panic: learn!

NLP Education is the country’s largest electronics technology company. It started offering a huge series of free trial lesson offers based on live videos for kids starting January 26. There are options for core subjects as well as enrichment subjects such as Scratch programming and calligraphy, with thousands of children participating live (including some from Wuhan students who have been specifically introduced to the general public) .

For students, according to Li Ting of science communications firm Cataba – who lives among Beijing’s coronavirus control measures – the popular slogan is “quit school, but don’t quit studying.” As Li tells us, “Workers and students are making the most of their time at home, and much of China has high-speed Internet access. It’s a great opportunity to switch to working online, and we’re excited that this new way of working is more efficient and flexible.

China online: a booming market

Ed-tech in China has exploded in recent years, which is not surprising in a country that culturally prioritizes education. Such a company, GSX Techedu, has exploded on the scene since its IPO in 2019 with shares tripled in value and forecast earnings growth of 163% over the next year.

GSX, which aims to bridge the learning imbalance between cities and urban areas, is among a huge number of companies looking to take advantage of the new wave of users – and it’s a market that was already world leader. Several Chinese companies are already valued at over a billion dollars, while giant TAL Education had a net worth of nearly $ 20 billion last year, with Shares hit a five-year high in mid-January on the Nasdaq.

Li explains some of the benefits of online education: “I bought a big package of classes for my daughter yesterday for about $ 20 an hour. It is individual learning and can help solve specific problems. It is personalized and flexible, which offers advantages over the offline version of schooling, which is less specific for the student. Online we can tell the teacher what we want to learn and they can prepare a lesson in advance.

A catalyst for change in global trade

Ed-tech globally has experienced a steady and remarkable increase, is expected to be worth over $ 250 billion this year. By far the most important of all is venture capital investment in China.

With the convenience of online interactions being in the spotlight in a global power like China, it is perhaps a unique catalyst on how we are changing our work and learning habits to increase the sustainability: working online offers a quick and easy way to reduce emissions.

Li explains that in China, “most of us are still waiting without much change because we believe that the virus will soon be under control and life will return to normal.” But in the meantime, it is “a great opportunity to change our model of managing global affairs.” His firm has recently moved from face-to-face meetings to Zoom-based advisory sessions with international and internal clients.

This upsurge in online learning and working in China indicates that there is potential – and demand – for a lot to change. When an entire generation of Chinese students are used to being educated online, it opens up a great opportunity when they step into the world of work.

A surprising consequence of the coronavirus? Maybe a shift to a more sustainable way of working for everyone.

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thanks for Peter Bickerton for additional research and reports in this article. I am the founder of SynBioBeta, and some of the companies I write about are sponsors of the SynBioBeta Conference and weekly summary – here is the complete list of SynBioBeta sponsors.

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