VIPKID, a leading online English education provider for children, announced Saturday evening that it will no longer sell new lesson packages involving foreign teachers from Aug. 7 and will no longer renew lessons involving foreign teachers for existing users from Aug. 9, following the implementation of China's "double reduction" policy aimed at reducing the burden on students and easing financial pressures on families that have contributed to low birth rates.

In a letter to students and parents issued on its official WeChat account, VIPKID said it would actively make adjustments in accordance with the "double reduction" policy and the requirements of relevant departments. Its overseas students and related international business would not be affected.

China's strict regulatory policy on curriculum-based tutoring has wiped out the industry overnight. The "double reduction" policy explicitly prohibits the hiring of foreigners outside of China to conduct educational activities, which has dealt a heavy blow to online English language institutions represented by VIPKID.

VIPKID stated that it will fulfill the contract for the existing users who have already enrolled in classes.

According to its official website, as a one-to-one online education provider, VIPKID has more than 70,000 North American tutors and more than 800,000 paying students in 63 countries and regions.

Share prices of Chinese education giants, including New Oriental Education and TAL Education Group, have crashed continuously due to the regulations.