Four Chinese companies were named by TIME magazine among the top 20 in the World's Top EdTech Companies for 2024, namely Knowbox, XuetangX, TAL Education Group and Meishubao.

The ranking, which assessed companies on their financial strength and industry impact, underscores the rising influence of Chinese innovation in education and global EdTech landscape

The competitive edge of China's EdTech

Wang Shuaiguo, director of Tsinghua University Online Education Center, noted that the top 10 list featured one Mexican and two Brazilian companies that many Chinese have never heard of. "This also shows that our perspective might be limited. We tend to focus on Europe, the U.S. or Asia, but other regions, like Latin America, have made significant strides," he said.

Wang acknowledged that the list broadens perspectives and illustrates the diverse global landscape of EdTech. "Although I think 10 percent in the top 250 doesn't fully represent China's leading position in EdTech, it does show the diversity of the global landscape. It indicates that all countries are actively paying attention to how the best technologies can be applied to education."

Founded in 2013 by Tsinghua University, XuetangX was China's first Massive Open Online Course (MOOC) platform and has since grown to become a leader in digital education, both domestically and globally. With over 8,000 courses offered by domestic and international universities, XuetangX serves a user base of 133 million, making it the largest MOOC platform in China and the second largest globally.

Wang highlighted the cultural factors underpinning success of EdTech companies in China, noting that education holds a revered place in Chinese society.

"In China, there is a deep-seated respect for education and teachers, which drives substantial investment in learning across families, universities, and cities," he explained. "This cultural foundation not only fosters a strong educational market but also fuels the rapid growth of EdTech companies. It's this unique environment that allows EdTech to thrive in China."

Challenges and opportunities in global expansion

Despite its domestic success, Chinese EdTech companies face challenges in expanding its reach globally.

"China has some inherent disadvantages, like language barriers. However, the Chinese market is large enough that Chinese companies don't feel the need to expand globally as strongly as companies from smaller countries do," Wang explained.

"Companies that survive in China's fiercely competitive environment are strong in terms of product quality, service and educational philosophy. This is why we're seeing Chinese companies trying to expand into Southeast Asia, the U.S., and other markets."

This development aligns with broader discussions at the Tsinghua Higher Education Forum, recently held in Beijing on August 30-31, where experts addressed the crucial role of technological innovation and AI in education.

Stefania Giannini, assistant director-general for Education at UNESCO, stressed the need for international collaboration. "To harness AI's advantages while avoiding its negative impacts, we must address many theoretical, policy and practical questions. This, of course, requires a new approach and global collaboration," she said.

Professor Steven Watson of the University of Cambridge further emphasized the complexities of integrating AI into education.

"Students are probably the most experienced users of generative AI, while professors, though less familiar, bear the responsibility for regulating its use. This presents a unique challenge for governance in higher education," he noted.

The future of EdTech 

Looking ahead, XuetangX is developing AI-enabled education solutions to maintain its leadership position in the EdTech industry.

Professor Tang Jie, vice dean of Tsinghua University's Department of Computer Science and Technology, emphasized the transformative potential of AI in education through his work on General Language Model (GLM). 

"The integration of different formats – text, image, and video – into a unified AI system marks a significant advancement toward Artificial General Intelligence (AGI). Our GLM models are at the forefront of this development," Tang noted. "We are witnessing the early stages of AI that can not only understand but also generate complex content, setting the stage for more sophisticated educational tools tailored to individual learning needs."

Anthony Welch, a professor at the University of Sydney, echoed these sentiments. He reflected on the evolving role of technology in education, noting that "technological change doesn't occur in a vacuum. It occurs under specific conditions at specific times. We need to pay attention to the social impact of AI and consider who the winners and losers are."

Wang also touched on the importance of maintaining healthy competition to avoid market monopolies, as seen in other countries. "In the U.S., you won't find companies constantly trying to challenge Amazon, but in China, there are at least five or six companies challenging Alibaba. The competition in China is incredibly fierce and this diversity in competition is what sets China apart."

As XuetangX continues to innovate and expand, the recognition from TIME serves as both an acknowledgment of its achievements and a challenge to continue pushing the boundaries of what is possible in education. 

"Education itself is a significant form of soft power," Wang noted. "Chinese EdTech companies need to ensure that we do better domestically and globally, leveraging our strengths to contribute to the future of education and mankind."