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Is it illegal not to run a school at the original site?
It is not illegal not to run a school at the original site.

The current school site approved by Huangpu District Education Bureau does not meet the requirements for running a school safely, and it will not be renewed at the original site after the school license expires.

The license for running a school is the proof that a private training school has obtained the qualification for running a school. All private training schools shall strictly abide by the provisions of the Law on the Promotion of Private Education in People's Republic of China (PRC) and the Regulations on the Implementation of the Law on the Promotion of Private Education in People's Republic of China (PRC), and run schools in accordance with the address, level, content and form specified in the school license. You are not allowed to buy, sell, lease or lend the license for running a school, entrust or contract the qualifications and projects for running a school to other institutions or individuals, change the location of running a school without authorization, or increase or change the level of running a school without authorization.