What is the main challenge that foreign investors might face when entering China’s education industry?

Even though there are myriad of opportunities in China’s education industry, the state government has been rather suspiciousof foreign participation in this particular industry. This is mainly due to how closely intertwined it is with Chinese ideology and identity and its propensity to influence children’s beliefs. For example, no foreign investment is allowed in compulsory education spanning ages 6-15. However, foreign investors are allowed to invest in pre-school educational institutions, high schools and tertiary educational institutions in the form of Sino-foreign joint ventures, in which the Chinese partner should occupy the leading position.