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In an era of rapid AI development, fostering creativity is a core educational goal. This study investigates the causal effects of China’s 2021 “Double Reduction” policy—a landmark initiative reducing homework and banning for-profit, subject-based tutoring while promoting school-based after-school services. Using two waves of longitudinal data from primary school students in Beijing and a Difference-in-Lasso control method, we find that reducing homework and increasing after-school services significantly boosted both creativity and academic achievement. However, restricting tutoring, while not impacting creativity, negatively affected the academic performance of students from lower socioeconomic backgrounds. These findings suggest the policy can successfully balance creativity and academics but underscore the need to address emerging equity issues.