It is again another example of superficial interpretation of what's happening in China.
Benefits of for profit off school tutoring of core subjects like Chinese literature, math, English have been debated for a lot time in China by educators, academics and government officials. And there were study and theories that those tutoring have no link to actual academic benefits. There were such studies in China, Germany, Korea and many other countries.
For profit k-12 tutoring companies have been using all means to drive up parents' anxieties of fearing their children to be left behind if not to take the courses.
And because of fierce competitions, most smaller k-12 tutoring companies couldn't survive and they often make a big sales push to collect as much tuition, as much as tens of thousands of RMB per child before they close and run. It happened so many times that media lost interest in them.
Chinese government always plays heavy hands in market. This is no different. But the decision itself isn't as simple and sensational as to boost child birth.