The plunging birth rate is thought to be driven by the high cost of living, low wages, long hours and little upward mobility. There is also some discussion that the regulations hope to reduce the cost of raising children, therefore increasing the birth rate. It has been presented as a way to reduce pressure on parents and students in China’s hyper-competitive education field. The Chinese Ministry of Education has outlined a new plan that will significantly impact the online English teaching industry. While rumours have been circulating about coming Chinese government regulations for a while, the official announcement finally came on July 26.