Policy Controls
Inputs
Ban Strictness
85%
Suppresses registered institutes & shuts commercial licensing.
Demand Buoyancy
90%
Parental Gaokao competition and inelastic academic demand.
Enforcement Intensity
40%
Audits, raids, and tip-off surveillance budgets.
Core dynamic: When the government shuts formal supply without curbing parental demand, educational transactions shift to underground networks at higher shadow prices.
Supply & Demand Equilibrium (Legal vs Underground)
Legal Supply
Shadow Supply
Buoyant Demand
Market Telemetry
Live Compute
Legal Supply Index
15%
Formal licensed capacity
Underground Volume
85%
Shadow transactions
Black Market Markup
+240%
Shadow premium per hour
Enforcement Leakage
High
Regulatory arbitrage risk
Restricted formal supply has crashed into stubborn Gaokao demand. Private tutors operate out of residential apartments and cafes, adding a steep risk premium that multiplies household expenses.