China's leading online tutoring platform Zuoyebang suspends its IPO in the U.S. and will make layoffs, a strong signal of the Chinese government's determination to reduce the homework burden of primary and secondary school students and the burden of out-of-school tutoring.

In response to the reports, Zuoyebang told the media that the company does not have a clear plan to go public and there is no timetable for a US IPO. As for the government’s "double reduction of burdens " policy, the company said it is paying attention to it.

Zuoyebang also said that they have no plans to lay off employees.

The Chinese government has recently been working on policies to reduce the burden of homework and out-of-school tutoring on primary and secondary school students.

A meeting of the Central Comprehensively Deepening Reforms Commission considered and adopted the "Opinions on Further Reducing the Burden of Homework and Off-Campus Tutoring for Students in Compulsory Education".

Officials at the meeting stressed that out-of-school training institutions must be comprehensively regulated and managed, and those institutions need to clarify the standard of training fees. And off-campus training platforms are strictly prohibited from arbitrarily capitalizing on their operations to avoid maliciously profit-seeking.

Zuoyebang was founded in 2015 and has received at least $3.4 billion in investment from investors such as SoftBank Vision Fund, Goldman Sachs Group, and Sequoia Capital China.