Education Non-Profit Finds Partners in China to Implement Education Programs

The education sector in China is booming and is only expected to continue growing in the coming decade; it is projected to be worth $744 billion USD by 2025. Education is a high-value commodity and families routinely spend 20-50% of their disposable income on their children’s education in test prep, language, extracurriculars such as the arts and in supplemental tutoring.

For foreign investors in the industry, there are a number of restrictions on investments; many organizations operate in the market through joint-ventures or through programs with local partners. It is not uncommon for this reliance on external shareholders to create issues in transparency.

The case study below introduces a few of the challenges a foreign business can face while entering the market via local partners and joint programs.

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Executive summary

A US-based, international education non-profit breaks into the education industry in China via local partnerships. However, transparency in the fast-growing industry can be a major concern for foreign investors. With our help, the client was able to come to an agreement with a partner that protected their interests and achieved their goals.

Challenge

Entering an unfamiliar market, our client faced the challenge of conducting business through partnerships. With their success tied largely to the partner’s integrity and the deal made, they needed both a reliable partner for long-term projects and the right protections in place.

Solution

Engaged on retainer, DSA was able to help the client navigate an industry complicated by regulations and quality of partners by providing legal assistance in negotiations and contract review to ensure they were protected. Additionally, we began their trademark filing to protect their IP and used our industry experience to assist the client’s partner search.

Impact

With the right counsel, the client was able to take control of the negotiations and ensure they were getting an agreement they were confident in and that protected their interests. Undeterred by challenges they faced, they will be formalizing their presence in China with an entity to expand their operations.

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