Beijing Private School Financial Crisis Sparks Concerns over Vulnerability of Sector

Much of its early visibility came from its celebrity co-founder, Li Yinuo, whose reputation lent credibility to the school’s idealistic mission to free students from stressful, exam-oriented teaching. 　

However, on November 11, Li announced through her WeChat account, Nuli Society, that ETU had fallen into a severe financial crisis: it could no longer reliably pay staff salaries or settle debts owed to suppliers. The disclosure triggered controversy within the education sector and intense debate on social media. Matters escalated further on November 23, when both Li’s WeChat video account and Nuli Society were suddenly banned without explanation, fueling public suspicion and speculation. 　

Li herself is a major source of public attention. She holds a biology degree from Tsinghua University and a PhD in molecular biology from UCLA, and has served as a global partner at McKinsey and as director of the China Program at the Bill & Melinda Gates Foundation. In 2010, Li and her husband launched Nuli Society, where she regularly published essays sharing views on social issues and personal growth, attracting over one million followers. To many parents, Li represents the ideal of academic excellence, professional achievement and educational innovation. 　

But the crisis at ETU has prompted many netizens to question the fragility of China’s private schools, even when led by someone as accomplished as Li. Private schools, which often charge high tuition fees and promise an alternative to the high-pressure public system, face inherent disadvantages compared with government-funded public schools, including unstable financing and high turnover of teachers and students. Their educational practices are also often questioned. These vulnerabilities make them more exposed to risk.