Summary
China’s State Council recently issued a document cancelling the requirement for specific licenses for 269 areas of business. One of these 269 fields is overseas study service agencies. The document is entitled “Decisions on the third instalment of the administrative licensing matters designated to the local governments by the central government”.

Before this announcement, prospective overseas study agencies needed to apply for approval from the relevant provincial education bureau before engaging in this area of business; each education bureau would set its own requirements in terms of areas such as minimum registered capital. Approval from the education bureau is now no longer required, although agencies still need to go through the formal business licensing procedure that applies to all companies in China.

Although the pre-approval is cancelled, the State Council stressed the importance of strengthening corresponding regulatory, supervision and management of overseas study agencies, in order to create and improve healthy market environment for overseas studies services industry. Guidance and services for these agencies will be coordinated by the Ministry of Education (MoE) together with the General Administration of Industry and Commerce (GAIC).

The decisions also call on the MoE and GAIC to formulate relevant sample contracts between the agency and the student applicant, although it is not compulsory for agents to follow this contract format. The sample contract has already been updated in December 2016 (see link below).

Analysis by Kevin Prest and Xiaoxiao Liu:
The relaxation of education bureau approval of overseas studies agencies will make it easier for new companies to enter the market and will also further narrow the gap among agencies with different sizes/locations. This will help to vitalise the market for overseas study agencies.

The British Council maintains its own certification and training for agents aiming to send students to the UK. Any further interests or enquiries regarding the agent training in China please contact Mr Xinping Wu at Wu.Xinping@britishcouncil.org.cn. 

Sources:
1. Decisions on the third instalment of the administrative licensing matters designated to the local governments by the central government, full text in Chinese: http://www.gov.cn/zhengce/content/2017-01/21/content_5161879.htm
2. News about the Decisions: http://news.xinhuanet.com/politics/2017-01/21/c_1120358399.htm
3. Sample contracts between the agency and the student applicant: http://www.jsj.edu.cn/n3/7004/929.shtml