It started affecting people in April, in Dali anyway. They stopped giving student visas to the over 60s a bit earlier than that, then nailed down all student visas shortly after they stopped travel and closed the skies. Not sure if it's connected to the virus response, or if it's a new permanent policy. Rumours that it was going to happen had been circling for a while before it actually did.
As far as I'm aware, the universities will only accept degree level students onto courses, and will only issue/extend visas for those students. I think these new visa rules mean the private schools don't really exist anymore. That certainly seems to be the case in Dali where I am anyway, whether this is a permanent thing or not, or the same in Kunming, nobody seems to know. Finding definitive information is proving difficult.
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My wife and I have been studying here in Dali for approximately eighteen months and are very happy with the school. Both management and teaching staff are friendly, helpful, and professional. They hold occasional activities such as barbecues etc which is good for interacting with native Chinese speakers, and with other students at different levels. We take one on two classes, so can choose what we want to study, and the pace we would like to go which has turned out well.
On the whole, a good school with good staff in a beautiful part of China.