Zhou Haitao Liu Qiang Tian Jing Li Qian Private Education in

Perspectives on Rethinking and Reforming Education
Haitao Zhou
Qiang Liu
Jing Tian
Qian Li
Private Education
in China
Achievement and Challenge
Perspectives on Rethinking and Reforming
Education
Series editors
Zhongying Shi, Beijing Normal University, Beijing, China
Shengquan Yu, Beijing Normal University, Beijing, China
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Haitao Zhou Qiang Liu
•
Jing Tian Qian Li

•
Private Education in China

Achievement and Challenge
123
Haitao Zhou Jing Tian
Beijing Normal University Hangzhou Dianzi University
Beijing, China Hangzhou, Zhejiang, China
Qiang Liu Qian Li

Beijing Normal University National Academy of Education
Beijing, China Administration
Beijing, China
ISSN 2366-1658 ISSN 2366-1666 (electronic)

Perspectives on Rethinking and Reforming Education
ISBN 978-981-10-4408-3 ISBN 978-981-10-4409-0 (eBook)
https://doi.org/10.1007/978-981-10-4409-0
Library of Congress Control Number: 2018947807
© Springer Nature Singapore Pte Ltd. 2018

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Acknowledgements
The completion of the research and the production of this book have emerged from
a team effort. Grateful appreciation is extended to all those who have contributed to
this book. This research endures for 5 years. We employed site-based research
method. The members collected data from more than 500 private schools in 24
provinces such as Shanghai, Shanxi, Chongqing, Guangdong, Henan, Jilin,
Ningxia, and Jiangsu by site visiting. Focus group interview and one-on-one
interview are adopted in data collection. There are more than 200 interviewees,
which consist of private school’s principals, administrators, organizers, teachers,
and students. We collected systematic quantifiable data from 3204 private schools,
21696 private school’s teachers, and 158674 private school’s students. Those
abundant firsthand data laid a solid foundation for this research. Now, the book has
finally been completed.
There are too many people owe my gratitude. Very special thanks to Prof. Zhong
Binglin. I cannot imagine that our team could complete this book without his
generous guidance and outstanding help. My gratitude also goes to our research
team, and many of them are the young scholars who worked diligently on this
research. They are Fang Fang, Gou Xiaohui, Jing Anlei, Liqian, Liuxia, Luwei, Shi
Shaojie, Zhang Mohan, Zhu Yucheng, Shi Wenmei, Wang Yitao, Yan Liwen,
Zhang Liguo, Ma Yanli, and Tian Jing. They worked tirelessly on every aspect
of the research preparation, data collection, data analysis, and writing.
I acknowledge that without their full support, this research would not have done
under the tight deadline.
My gratitude is extended to the private school’s principals, administrators,
teachers, and students in this research. It is precise because of their selfless help,
and we can collect the data for this research.
Finally, my special thanks go to Faculty of Education of Beijing Normal
University for the funding and Springer Press for the professional guidance in
English publication.
v
vi Acknowledgements
No words can express my sincere appreciation and gratitude to all the contrib-
utors. But I carry on argumentation to Chinese private education certainly, please
correct if there is any deficiency in the passage.
June 2018 Haitao Zhou

Contents
1 Private Education and the Tale of Two Sectors . . . . . . . . . . . . . . . . 1

1.1 Chinese Philosophy of Private and Private Realms . . . . . . . . . . . 1
1.2 Private Education in Pre-modern Times . . . . . . . . . . . . . . . . . . . 3
1.3 Private Education in Early Modern Times . . . . . . . . . . . . . . . . . 6
1.4 Private Education in the New China . . . . . . . . . . . . . . . . . . . . . 10
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2 Private Education Development at a Glance Since 2003 . . . . . . . . .. 13
2.1 Changes in the Number of Private Schools
from 2003 to 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
2.1.1 The Number of Private Colleges/Universities
Nationwide Grows Continuously, and the Proportion
Private Colleges/Universities Rose First and Then
Went Down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
2.1.2 The Number of Private Independent Colleges
Nationwide Increased First and Then Decreased,
and the Proportion of Private Independent Colleges
Fluctuated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14
2.1.3 The Number and Proportion of Private Senior High
Schools Nationwide Showed Wavelike Changes . . . . .. 14
2.1.4 The Number and the Proportion of Private Secondary
Vocational Schools Nationwide First Increased
and Then Decreased . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
2.1.5 The Number of Private Junior High Schools Showed
a Fluctuating Trend and the Proportion It Takes
Increased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17
2.1.6 The Number of Private Primary Schools Showed
Wavelike Changes, and the Proportion It Takes
Continued to Rise . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17
vii
viii Contents
2.1.7 The Number of Private Kindergartens Continued

to Increase, and the Proportion Increased First
and Then Decreased . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
2.2 The Number of Students in Private Colleges/Universities . . . . .. 18
2.2.1 The Number of Students in Private Colleges/
Universities and the Proportion to the Total
College Students Were Growing . . . . . . . . . . . . . . . . .. 18
2.2.2 The Number and Proportion of Private Higher
Education Enrollment Nationwide Witnessed
a Wavelike Change . . . . . . . . . . . . . . . . . . . . . . . . . .. 19
2.2.3 The Number of Private College Graduates Continued
to Grow, and the Proportion in Total Graduates
Nationwide Rose and Fell Alternately . . . . . . . . . . . . .. 20
2.3 The Number of Private Senior High School Students
and the Proportion It Takes in Total Senior High School
Students Grew Rapidly, Followed by a Stable Stage . . . . . . . . .. 21
2.3.1 The Number of Students in Private Senior High
Schools Nationwide and the Proportion It Takes
Developed Steadily . . . . . . . . . . . . . . . . . . . . . . . . . .. 21
2.3.2 The Number and Proportion of Enrollment in Private
Senior High Schools Nationwide Kept Stable
Basically . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23
2.3.3 The Number and Proportion of Graduates in Private
Senior High Schools Nationwide Had a Fluctuating
Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23
2.4 The Number and Proportion of Students in Private Secondary
Vocational Schools Increased at First and Then Showed
a Decreasing Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24
2.4.1 The Number and Proportion of Students in Private
Secondary Vocational Schools Increased Before
a Decreasing Trend . . . . . . . . . . . . . . . . . . . . . . . . . .. 24
2.4.2 The Fluctuation in the Number and Proportion of
Enrollment in Private Secondary Vocational Schools . .. 25
Secondary Vocational Schools in China Increased
First and Then Decreased . . . . . . . . . . . . . . . . . . . . . .. 25
2.5 The Number and Proportion of Students in Private Junior
High Schools Had a Continuous Rise . . . . . . . . . . . . . . . . . . .. 26
Junior High Schools Had a Continuous Rise . . . . . . . .. 26
2.5.2 Both the Number and the Proportion of the Enrollment
of Private Junior High Schools Kept Growing . . . . . . .. 28
2.5.3 The Number and Proportion of Graduates from
Private Junior High Schools Kept Growing . . . . . . . . .. 28
Contents ix
2.6 The Number and Proportion of Students in Private Primary

Schools Kept Growing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 28
2.6.1 The Number of Students in Private Primary Schools
Kept Growing and so Did the Proportion It Takes
Nationwide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 28
2.6.2 The New Student Enrollment of Private Primary
Schools Kept Growing and so Did the Proportion
It Takes Nationwide . . . . . . . . . . . . . . . . . . . . . . . . . .. 28
2.6.3 The Number of Graduates from Private Primary
2.7 The Number of Students in Private Kindergartens Kept
Growing and so Did the Proportion It Takes Nationwide . . . . .. 30
2.7.1 The Number of Students in Private Kindergartens
Kept Growing Steadily and so Did the Proportion
2.7.2 The Enrollment of Private Kindergartens Kept
Growing Steadily and so Did the Proportion
2.7.3 The Number of Graduates from Private Kindergartens
Nationwide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31
2.8 Private School Students During Different Periods by Province/
Autonomous Region/Municipality . . . . . . . . . . . . . . . . . . . . . .. 33
2.8.1 Private Colleges and Universities and Students
by Province/Autonomous Region/Municipality . . . . . . .. 33
2.8.2 Private Independent Colleges and Students
2.8.3 Private Senior High Schools and Students by Province/
Autonomous Region/Municipality . . . . . . . . . . . . . . . .. 34
2.8.4 Private Secondary Vocational Schools
and Students by Province/Autonomous Region/
Municipality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34
2.8.5 Private Junior High Schools and Students by Province/
2.8.6 Private Primary Schools and Students by Province/
2.8.7 Private Kindergartens and Students by Province/
2.9 Average Private School Scales in Different Education Periods
by Province/Autonomous Region/Municipality (2014) . . . . . . .. 42
2.9.1 Average Private College/University Scales
x Contents
2.9.2Average Private Senior High School Scales

2.9.3 Average Private Secondary Vocational School
Scales by Province/Autonomous Region/
Municipality (2011) . . . . . . . . . . . . . . . . . . . . . . . . . .. 44
2.9.4 Average Private Junior High School Scales
2.9.5 Average Private Primary School Scales by Province/
2.9.6 Average Private Kindergarten Scales by Province/
2.10 Changes in the Number of Teachers in Private Schools
Nationwide (2003–2015) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 48
2.10.1 Private School Teachers in Each Education Period
Increased Gradually Nationwide . . . . . . . . . . . . . . . . .. 48
2.10.2 Private School Teachers in Different Education Periods
2.11 Changes in the Amount of Educational Finance in Private
Schools Nationwide (2007–2013) . . . . . . . . . . . . . . . . . . . . . .. 55
2.11.1 The Educational Income and Expenditure in Private
Colleges/Universities Increased Year by Year . . . . . . .. 56
Secondary Vocational Schools Showed an Increase
First, Followed by a Decrease . . . . . . . . . . . . . . . . . . .. 57
Senior High Schools Grew Steadily Over the Years . . .. 58
Junior High Schools Continued to Grow Over
the Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 60
2.11.5 The Educational Income and Expenditure
in Private Primary Schools Were Growing
Steadily Year by Year . . . . . . . . . . . . . . . . . . . . . . . .. 61
2.11.6 The Investment of Private School Organizers
and the Proportion It Takes in the Total
Educational Finance Were Fluctuating . . . . . . . . . . . . .. 62
2.12 Assets of Private Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 63
2.12.1 Assets of Private Colleges/Universities by Province/
2.12.2 Assets of Private Senior High Schools by Province/
2.12.3 Assets of Private Junior High Schools by Province/
2.12.4 Assets of Private Primary Schools by Province/
Contents xi
2.12.5 Assets of Private Kindergartens by Province/

2.13 The Periodical Characteristics of Private Education
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 72
2.13.1 Desalination of Organizers’ Profit-Oriented,
Manifestation of Organizers’ Educational Sentiment . . .. 72
2.13.2 School-Running Should Adhere to the Interior Law . . .. 73
2.13.3 Development Mode Transition: From the Hard Power-
“Strive for Survival” to the Soft Power-“Live with
High-Quality and Live Long” . . . . . . . . . . . . . . . . . . .. 73
2.13.4 Continued Perfection of Registration of Juristic
Persons, Property Rights System, and Deep-Seated
Problems Need to Be Solved . . . . . . . . . . . . . . . . . . .. 74
2.13.5 Government Reinforce Prop Dynamics and the
Financial Resources Remain to Be Expand . . . . . . . . .. 75
2.13.6 Teacher and Student’s Legal Interest Was Protected to
Some Extent, Interest Protection Mechanism Should
Be Perfected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 76
2.13.7 Reinforcement of Internal Normative Consciousness
and the Speed of Legal Governance Construction Is
Expected to Accelerate . . . . . . . . . . . . . . . . . . . . . . . .. 76
2.13.8 The Expansion of the Autonomy in Running Schools,
Empowerment, Management, and Service Need
Synchronous Update . . . . . . . . . . . . . . . . . . . . . . . . . .. 77
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 78
3 The Legal Person’s Classification Registration and the Ownership
of Property in Chinese Private Education . . . . . . . . . . . . . . . . . . . .. 79
3.1 Classification Is Legal Person’s Property Within Chinese
Legal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 79
3.1.1 Enterprise as Legal Person . . . . . . . . . . . . . . . . . . . . .. 80
3.1.2 Official Organ, Provider, and Social Organization
as Legal Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 80
3.2 Chinese Legal Provisions Whose Nature as a Legal Person
of Private Education Providers . . . . . . . . . . . . . . . . . . . . . . . . .. 82
3.3 Policy Practice of Local Governments . . . . . . . . . . . . . . . . . . .. 83
3.4 New Trends After the Promulgation of the Private
Education Promotion Law Amendment . . . . . . . . . . . . . . . . . .. 89
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 92
4 The Ownership of Property Rights of Chinese Private
Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
4.1 Chinese Relevant Policies and Regulations . . . . . . . . . . . . . . . . . 95
4.1.1 Policies and Regulations at the National Level . . . . . . . . 95
xii Contents
4.1.2 Relevant Provisions of Local Governments . . . . . . . ... 98

4.2 The Private Education Achievements . . . . . . . . . . . . . . . . . . . . . 102
4.2.1 The Founders’ Property Rights Separated
from the Assets of Education Providers . . . . . . . . . . . . . 102
4.2.2 The Property Rights and Equity of the Legal
Persons and Private School’s Investors Have
Gradually Clarified . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
4.2.3 Guaranteeing the Investors’ Right to Make Profits
and Reasonable Returns . . . . . . . . . . . . . . . . . . . . . . . . 103
4.2.4 The Reform of Diversified Property Rights Has
Stimulated Education Providers’ Energy . . . . . . . . . . . . 104
4.3 Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
4.3.1 Legal Person’s Property Rights Are Incomplete . . . . . . . 105
4.3.2 The Property Right System Is Vague . . . . . . . . . . . . . . . 105
4.3.3 The Status of Subjects’ Property Rights and the
Contents of Powers and Functions Are not Clear . . . . . . 106
4.4 Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
4.4.1 Adjusting and Amending the Current Policies and
Regulations to Make Them Cohesive and Consistent . . . 106
4.4.2 Clarifying the Private School’s Property Rights
as Legal Persons According to Law and Clearly
Defining the Ownership of Assets Invested
by the Private School’s Founders . . . . . . . . . . . . . . . . . 107
4.4.3 Improving the Investment Return System to Ensure
Reasonable Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
4.4.4 Establishing a Standard System for the Recognition
and Circulation of Private School’s Property Rights . . . . 108
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
5 Chinese Private Education Public Financial Assistance . . . . . . . . . . . 111
5.1 Theoretical Discussions of Private Education Public
Financial Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
5.1.1 The Public Goods Theory Defines the Government’s
Obligation to Provide Private Education Products . . . . . 111
5.1.2 Education Equity Theory Supports the Government
Provides Equal Education Opportunities for Students
in Private Education . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
5.1.3 Education Cost Sharing Theory Clarifies
the Government’s Responsibility in Sharing
the Cost of Private Education . . . . . . . . . . . . . . . . . . . . 113
5.2 Current Situation Demands Public Financial to Support
Private Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Contents xiii
5.2.1 The Contradiction Between the Government’s

Insufficient Investment in Public Education and
People’s Increasing Demand for Diversified Education
Requires the Development of Private Education . . . . . . . 114
5.2.2 Education Partial Privatization Improves Public
Education Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
5.3 Chinese Policies and Public Financial Assistance to Private
Education Reforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
5.3.1 Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
5.3.2 Main Forms of Public Financial Assistance to Private
Education in China Currently . . . . . . . . . . . . . . . . . . . . 119
5.3.3 Providing Tax Incentives and Land Concessions
to Private Schools Is also an Important Means
for the Government to Support Private Education . . . . . 122
5.4 Problems and Suggested Solutions . . . . . . . . . . . . . . . . . . . . . . . 123
5.4.1 Unsmooth Financing Channels and Few Sources
of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
5.4.2 Public Financial Support Policy Lacks
of Effectiveness in Operation . . . . . . . . . . . . . . . . . . . . 124
5.4.3 Financial Management Chaos in Private Schools . . . . . . 124
5.4.4 Potential Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
6 Governance System of Private Schools . . . . . . . . . . . . . . . . . . . . . . . 129
6.1 The Related Policies and the Implementation Effectiveness . . . . . 129
6.1.1 Regulating Running Private Schools in Conformity
with Legal Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . 129
6.1.2 Implementing Autonomous Right of Private Schools . . . 132
6.1.3 Perfecting the Internal Governance of Private
Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
6.1.4 Promoting the Social Participation in Private Schools . . . 138
6.2 The Main Existing Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
6.2.1 Lawless, Failure to Observe the Law and Lax
Enforcement Still Exist . . . . . . . . . . . . . . . . . . . . . . . . . 139
6.2.2 The Poor Implementation of the School-Running
Autonomy, and Remains Highly Divergent . . . . . . . . . . 141
6.2.3 There Are Unclear Responsibilities and Rights
in the Internal Governance . . . . . . . . . . . . . . . . . . . . . . 142
6.2.4 Insufficient Social Participation in School
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
6.3 Theoretical Basis and Practical Reference . . . . . . . . . . . . . . . . . . 146
6.3.1 The Theoretical Basis for the Construction of Private
School Governance System . . . . . . . . . . . . . . . . . . . . . . 146
xiv Contents
6.4 Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

6.4.1 The Countermeasures for the Construction
of Governance System in Non-profit Private Schools . . . 153
of Governance System in For-Profit Private Schools . . . . 162
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
7 Rights and Interests Guarantee of Private School Teachers . . . . . . . 169
7.1 Relative Polices and the Effectiveness . . . . . . . . . . . . . . . . . . . . 170
7.1.1 Carry Out the Classified Management and Provide
Differential Support . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
7.1.2 Set up a Guiding Standard and Raise Salaries . . . . . . . . 171
7.1.3 Implementing Preferential Policies to Enlarge
the Number of Talents . . . . . . . . . . . . . . . . . . . . . . . . . 172
7.1.4 Improve the Social Security System to Narrow
the Income Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
7.1.5 Encourage Teachers in Private and Public
Schools to Help Each Other to Promote Personnel
Rational Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
7.1.6 Carry Out the System of Personnel Agency,
Increase Teacher’s Promotion Opportunities . . . . . . . . . 176
7.1.7 Purchase Educational Services and Strengthen
the Team Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
7.2 The Main Existing Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
7.2.1 The Private School Teachers’ Low Status Caused
by Their Unclear Identities . . . . . . . . . . . . . . . . . . . . . . 185
7.2.2 Private School Teacher’s Salary Is Much Lower
and Their Social Security Is Insufficient . . . . . . . . . . . . . 187
7.2.3 There Are Still Many Obstacles of Professional Title
Appraisal, Teachers’ Professional Development
Is Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
7.2.4 The Organizational Mechanism of Teacher’s
Democratic Participation Is Incomplete, and Teacher’s
Democratic Participation Opportunity Is Limited . . . . . . 191
7.3 Theoretical Basis and Practical Reference . . . . . . . . . . . . . . . . . . 193
7.3.1 Recognition of Teachers’ Rights and Interests
in Private Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
7.3.2 The Theoretical Basis for the Protection of Private
School Teachers’ Rights and Interests . . . . . . . . . . . . . . 195
7.3.3 Practices in Different Regions . . . . . . . . . . . . . . . . . . . . 199
7.4 Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
7.4.1 Revising and Improving the Construction of Laws
and Regulations to Ensure the Implementation
of the Relevant Policies . . . . . . . . . . . . . . . . . . . . . . . . 202
Contents xv
7.4.2 Making Clear the Idea of Classified Support, and

Pushing Ahead with Multi-participation and
Collaboratively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
7.4.3 The Government Performs Its Management Functions
and Gives Full Play to Its Role as a Regulator . . . . . . . . 205
7.4.4 Private Schools Should Fulfill Their Responsibilities to
Ensure Teacher’s Legitimate Rights and Interests . . . . . . 208
7.4.5 Industry Organizations Should Offer Professional
Services to Promote the Policy Implementation . . . . . . . 209
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
8 New Reality: Supporting and Regulating Nongovernmental
Forces in Education Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Introduction
With the mushrooming of private schools from preschool to higher education since
1990s, private education has penetrated almost every level of education in China.
Ranging from shadow education to formal education, private education contributes
a great deal to education in China. Chinese government has taken positive gover-
nance measures to facilitate the healthy development of private education, such as
private school’s property rights, financial assistance, teacher’s professional devel-
opment, remunerations, and so on. The development of private education has made
tremendous contributions to China’s education
Even though, there are many challenges lay ahead for Chinese private education,
Chinese private education makes great achievements. This study tries to examine
Chinese private education’s achievements and challenges throughly. For instance,
what are the periodical characteristics of the reform and development of private
education in China in the existing period? What achievements have made in rele-
vant pilot policies’ implementation? What structural and institutional obstacles still
being? How to guarantee teacher’s legal interest and stimulate teacher’s enthusi-
asm? We invite more than 20 scholars in the fields of education, finance legal, and
management from more than ten universities and research institutes to conduct the
study try to answer those questions. We employ mix method to conduct this
research. Based on systematic research, this book mainly demonstrates the
modalities, achievements, and challenges of private education in China.
Although private education has a long history in China, it is even until recent
years people can have a comprehensive understanding of private education by
breaking the intrinsic prejudices. Adhering to the principles of reform-oriented,
problem-oriented, and policy-oriented, this book focuses on the achievements and
challenges of Chinese private education. The book consists of seven chapters, the
main arguments are as follows:
Chapter 1 outlines the development course of Chinese private education.
Historically, Chinese private education can be traced to the Spring and Autumn
Period which is more than 2000 years ago. It helps to know the exact details of the
evolution of private education with comparison of public education. The study of
Chinese private education history is indispensable for us to understand many tricky
xvii
xviii Introduction
problems, for example, why private education at a disadvantage for a long time?
What the government should do to facilitate the development of private education,
etc. Therefore, it is beneficial to know Chinese private education’s status quo and
the future trend in the historical context.
Chapter 2 discusses the changes of Chinese private school from multiple per-
spectives in the context of Chinese private education that plays a more significant
role in the whole education ecosystem. All levels of Chinese private education have
witnessed tremendous change both qualitatively and quantitatively since the pri-
vatization process at the turn of the twenty-first century. Providing detailed and
accurate data of Chinese private education in the past 12 years, the visualized
dynamic changing curve can be seen in this amply illustrated part.
In the past three decades and more, the practice of Chinese private education
contributes to change the government’s educational administrative function.
Chapter 3 discusses the realistic basis and overall framework of classification
management. As the indicator of the transformation of government administrating
function, the change of classification management policies shows the achievements,
challenges, and new trends of legal person’s classification registration and the
ownership of property in Chinese private education well and truly. The related
policies of central government and local government are thoroughly discussed in
this part.
Chapter 4 focuses on the ownership of property rights of Chinese private
institutions. The development of Chinese private education is impeded by the
problems of the vague ownership of property rights and infringement of property
rights. Establishing a reasonable property rights system should deal with the urgent
problems such as private school raising capital, conflict between profitability, and
public welfare of private school properly. By analyzing the policies and policies of
national and local governments, we can have a panoramic view of Chinese private
institutions’ ownership of property rights.
Chapter 5 demonstrates the crucial financial issues of Chinese private education.
The funding and financial management system is private school’s top concern. We
begin with a theoretical framework review of public good theory, education equity
theory, and education cost-sharing theory. An analysis of the policy reform and
problems emerging in China with the financial issues is followed. This chapter ends
with a proposal of some potential solutions of the existing problems such as few
sources and channels of funds, poor implementation of the supporting policy, and
confused internal fund management of education providers.
Chapter 6 diagnoses private school’s governance system. After reviewing the
current government policies and their implementations, as well as borrowing ideas
from the pilot experience with reference to the construction of private school
management system, this chapter proposes the policies of improving for-profit and
non-profit private school’s management system. Then, this chapter draws the two
principal proposals within the framework of the classification management system.
First, the non-profit private schools should focus on the key external system con-
structions. Second, the for-profit private schools shall comply with the common
Introduction xix
requirements of running school lawfully, managing schools independently, super-

vising schools democratically, and participating school’s affairs socially.
Chapter 7 points out how to guarantee private school teacher’s rights and
interests. This chapter discusses the core issues of how to improve the relative
policies by sorting out the related policies first. Chapter 7 theoretically analyzes the
effectiveness and problems appear after the policies implementation, and eventually
making policy proposals to classify guarantee private school teachers’ rights and
interests.
The rise of private schools has acted as a major impetus to the development of
Chinese education. The state adopted policies of active encouragement and vig-
orous support for private education. Yet, despite there are valuable achievements of
private education, the achievements are obvious to all, for instance, the upsurge
number of private schools, the continuous improvement of education quality, and
more comprehensive institutional assurance. Nevertheless, Chinese private educa-
tion appears vulnerable to the crucial topics such as the financing, the reform of
personnel system, the relationship between government regulation and market law,
etc. Overall, it is predictable that China turns into a critical period of policy
adjustment based on the private education stakeholder’s endeavor.
Chapter 1
Private Education and the Tale
of Two Sectors
1.1 Chinese Philosophy of Private and Private Realms
Chinese traditional philosophy devotes great attentions to investigating and com-

paring “public” (gong) and “private” (si). Although Chinese “gong” and “si”
are translated as “public” and “private” in English, those two words have broader
annotations and implications in Chinese. How “public” and “private” are treated in
philosophy has a far-reaching impact on Chinese social and political structure. It will
also exert a subtle influence on Chinese national character and value beliefs.
The study of etymology reveals that the Chinese character “gong” appeared
earlier than “si” in Chinese calligraphy. In the Oracle and Bronze Age (around 1700
B.C.), “gong” was a courtesy title for legend ancestors or dukes, and referred to the
state, community, or monarchy. At the very beginning, “si” referred to oneself and
individual, and then referred to everything nonpolitical or nongovernmental. The
“gong” or “si” conveyed nothing commendatory or derogatory until gong got its
extended meaning of equal distribution of social resources, justice, and fairness.
“Si” gradually referred to value, which completely opposites to “gong.” It has been
believed that this happened during the Spring and Autumn Period (722–221 B.C.),
and the idea of respecting “gong” and restraining “si” was ubiquitous in classics at
that time. Confucius described “gong” in “the operation of etiquette” of Book of
Etiquette (Li Yun Da Tong) as an ideal society, where the world belonged to the
public and the society was in Great Harmony (da tong). Taoists insisted that the
world (tao) was communal instead of private. Mohists called for public welfare and
righteousness, and Legalists proposed to establish national laws to overcome
selfishness and build up devotion to the public interest. Master Lü’s Spring and
Autumn Annals (Lüshichunqiu), an eclectic collection of all schools of thought at
this period, put forward the opinion of eliminating “si” and worshiping “gong.”
Since then, “public” and “private” in Chinese culture had strong sentimental color
of value judgment. “Public” connected to the values which people promoted, while
“private” connected to the values which people denounced.
© Springer Nature Singapore Pte Ltd. 2018 1

H. Zhou et al., Private Education in China, Perspectives on Rethinking
and Reforming Education, https://doi.org/10.1007/978-981-10-4409-0_1
2 1 Private Education and the Tale of Two Sectors
The rise of “neo-Confucianism” in Song Dynasty (960–1127) strengthened the

public–private polarity by upgrading “gong” as morality principle, and countering
“si” as human desire which needed to eradicate. Inspired by strands of public–private
thought of Chinese predecessors, neo-Confucian scholar Zhu Xi (1130–1200)
proposed “to preserve justice and to discard desires” as a motto. The government
adopted this idea as official ideology, and trumpeted the people to get rid of their
mundane desires and private interests to serve to the feudal system better. Since
then, the relative superiority of “public” had been taken to extremes, and the
overwhelming tendency toward “public” had been developed.
The change happened in the mid-sixteenth century when China was in transition
from Ming Dynasty to Qing Dynasty. Ideologists such as Gong Zizhen, Xue
Fucheng, Li Zhi, and Yan Fu started to justify the pursuit of personal interests. The
above ideologists believed that “si,” referring mainly to human desire or private
gains, would provide impetus for social progress. As the government of Qing
Dynasty declined its power gradually, the government and the ideologists encour-
aged private economic activities to promote social vitality. Nevertheless, the last 70
years of Qing Dynasty (from the Opium War in 1840 to the 1911 Resolution) was a
period of decay and disorder, in which the vulnerable empire crumbled away under
the weight of foreign invasions, peasant uprisings, and endless warlord conflicts. On
the one hand, the era of upheaval accompanied with the ideology liberation in
Chinese history. On the other hand, the wars between China and western countries
promoted the spread of western culture and ideology. In western culture, the relation
between self-interest and public interest had never been opposite to each other, nor
could the growth of one party predicated upon the diminishment of the other. If there
is a hierarchical relation between “public” and “private,” people normally prioritized
“private” because selfishness was a virtue, and selfish motived a prerequisite for
human activities and social development. Public interest shall be something a society
has to seek for, but the very reason why people seek for public interest was that it is
helpful to attain private interest and individual well-being. Modern and contempo-
rary Chinese philosophy has been advocating for the pursuit of private interest
within a rational range, and “si” legitimized psychosocially.
Nowadays, it is quite clear that the concept of private in Chinese philosophy is
very complex, which connects personal, individual, nongovernment, nonpolitical,
partial, bias, self-interested, evil, and even illegal. How to draw lines between
public and private realms in social life? In fact, the dichotomy of “gong” and “si” is
merely an ideal. The Chinese social pattern has always been characterized by an
elastic “gong-si” relation or even self-centered. The most widely held explanation
for this paradox is that traditional society based on the clan system, which centered
by family dictatorship, hereditary succession, and nepotism. Family is quite “si” to
the state but quite “gong” to single individual. It is “like the ripples formed from a
stone thrown into a lake, each circle spreading out from the center becomes more
distant and more insignificant at the same time.”1 Self refers to different selves at
1
Hsiao-Tung (1992).
1.1 Chinese Philosophy of Private and Private Realms 3
different “ripples,” and self subordinates to individual’s family. The family con-
nects to different families at different “ripples” and subordinates to the state. In this
context, each family is a miniature state, and the state develops its structure out of
families.2 “Gong” and “si” exist as social microcosm and macrocosm. The emperor
represents “si” for his family and represents “gong” for the nation in the meantime.
The land, which is the most important means of production in feudal society, is
private by families, and the land is state-or-royal-controlled as well. The wealth and
assets earned by a certain person belonged to and redistributed by the family, which
makes the family ownership rather than private ownership as the foundation of
Chinese traditional economy.
That is to say, the “private” roots deeply in Chinese ideology and
social-economic pattern from a historical perspective. The nature of “private” is not
constant. The private realm and the public realm are often overlapped and trans-
formable. However, the private participation is introduced and developed from long
time ago in Chinese politics and economy overall, while private spheres are con-
fined differently from the western culture perspective. The division of social spheres
is not as clear for public/private realms as for government/civilian realms. This
opinion is sufficient to explain that Chinese private education (civilian-run educa-
tion) has its own distinct features as regards its relationship with public education
(government-run education).
1.2 Private Education in Pre-modern Times
China possesses the longest continuous recorded history in the pre-modern world.3
However, the beginning of private education and private school is a topic in dis-
pute. Many researchers insist that Confucius is the founder of private education in
China, for “Confucius has a preference for training student for character instead of
vocation.”4Other researchers believe that private education is born from the folk,
and the knowledge transmission outside official schools is frequent and broad.
School education was exclusive to the ruling class before Confucius set up aca-
demies to deliver lecture to the public. The government-monopolized education at
that time not aimed to restraining private education participation but for practicing
the dominant political idea. Formal education served for the ruling class only by
doing this. In this sense, there was no need to distinct public and private education
before Confucius, or we can say, Confucius built an initial nongovernmental
education system which culture began to move down to the social ladder, and the
division of public and private sectors in education became possible.
2
Yao (2010).
3
Makeham (2008).
4
Ferrara (2015). Chapter 1.
It is worth taking up space to describe the social context in which Confucius’

education became popular. Vassals contended for hegemony and the royal family
declined in the Spring and Autumn Period (770–475 BC). State-run schools closed,
teachers and the educational materials (for example, classical books and cultural
documents) dismissed and spread from the royal families to common people. The
separatist regimes sought for intellectual support by gathering able and virtuous
people in their territories and inviting famous lecturers to teach. Confucius was the
forerunner of private tutoring. The Confucian school of thought was widely spread
among Chinese literati. Most of those literati became the mainstay of imperial
politicians after graduation. The regimes also invited many other scholars to deliver
lectures to literati and civilian intellectuals. By the Warring States Period, hundreds
of schools of thought had been contended for attention, among which
Confucianism, Taoism, Legalism Mohism, and the Yin-Yang School were the most
competitive and famous ones. Most of their disciples and followers became
scholar-bureaucrats in ancient China. Those people together created a favorable
milieu for the development of private education and private academies.
Private education lost its momentum when China in the reign of Qin Dynasty
(221–206 B.C.). The First Emperor of Qin created a heavily centralized government
and banned private tutoring and private education. To achieve absolute control over
social and intellectual activities, The First Emperor of Qin burned books and buried
Confucian scholars massively. Since Qin Dynasty was very brief, only 15 years in
total. The break of private education was soon repaired, and private teaching gained
strength again in Han Dynasty (202—220B.C.).
Han emperors adopted a liberal policy toward the civilian’s educational and
cultural activities. Though the ruling philosophy based solely on Confucianism,
other schools of ideology thought and developed in private schools were preserved.
Private education no longer confined to adult learning, but materialized itself in
different private schools at different levels. Chinese historian widely accepts the
idea that private education in Han Dynasty was systematic, comprehensive, and of
various forms. There are numerous private schools offering enlightening education
to children. On most occasions, the village or the town hired the tutors for these
schools and pay for them. School-age children went to the private school to learn
literacy and elementary arithmetic. That is, the collectively offered education which
parallels to primary education in modern society. This is an alternative way to get
formative education in ancient China. It was very popular for children to get
homeschooling with their elder generation or with employed private tutors. After
completing homeschooling, students were qualified to go to higher level schools to
learn Confucian classics. This phrase of learning was equal to secondary education
in modern society, and the learning aimed not at the thorough understanding but the
fluent recitation of the classics. Students chose and be chosen to further their study
in various academies for the preparation of official careers. Learning in this phrase
was not limited to reading and reciting the Confucian classics but extended to the
understanding of reasonable ideas proposed by many other schools of thought. The
old-style private higher education institutions normally established and leaded by
well-known scholars, with functions of teaching, learning, conducting academic
1.2 Private Education in Pre-modern Times 5
research and compiling books. The scholars who founded the institutions would
teach their original idea or interpretations of classics to their students.
Han Dynasty is a historical period which public education flourishes as well. At
the local level, there were many district-based higher education institutions and
primary schools. At the central government level, Emperor Wu of Han set up the
most high-level educational institution called the Imperial College (“tai xue”) to
teach Confucian classics. The government selected talents among the students as
public officials in 139 B.C. Different from the pattern in the Spring and Autumn
period and the Warring States period, public education declined while private
education prevailed, and Han Dynasty created a mutual prosperity of both public
and private education. The role of private sector as education provider outside of the
governments was highly appreciated.
History repeats itself. The South and North Dynasty (220–589 A.D.) had a
recurrence of public education declining and private education booming. However,
the following Sui Dynasty and Tang Dynasty (581–907 A.D.) performed a play in
which public and private education were highly developed and complemented to
each other. At that time, receiving enlighten education in private schools and then
entering state-run higher education institutions or public specialized academies of
laws, math, or calligraphy became the mainstream. It was greatly encouraged by the
central government. Many researchers accept the school education system and the
joint efforts of the two sectors. School education system reached its peak during this
period.
The private education continued to grow in Song Dynasty and Yuan Dynasty
(960—1368 A.D.). The interaction between public and private education was more
frequent than ever before. Academy (shuyuan in Chinese) is unique private higher
education institution and could be traced back to Han Dynasty. The invention of
typography in Song Dynasty speeded up bookmaking, circulation, and knowledge
dissemination; it also facilitated the spread of shuyuan all over China. The academy
was independent private institution at the first time but gradually turned to be an
public and private mixed institution. Song Dynasty, unlike other dynasties, took an
active part in shuyuan administration. The central government explicitly encour-
aged the establishment of shuyuan, the emperors, from time to time, bestowed
precious books, and documents to outstanding ones. The wealthy local govern-
ments even granted directly to establish shuyuan, which in turn undermined the
autonomy and independence of shuyuan.5 When Mongolian conquered Song
Dynasty and established Yuan Dynasty which is the first minority dynasty6 to rule
China, Yuan Dynasty increased government’s supervision of shuyuan, though the
development of shuyuan was still be encouraged and protected, in order to
strengthen the political ideology control of the Han nationality intellectuals. It is
noteworthy that the government was not the single party, which showed
5
For example, the Stone Drum Academy, one of the four famous academies.
6
The nationality of most Chinese is The Han Nationality, people in other ethnic group belongs to
minority group.
tremendous interests in private education. The private education providers

responded with similar interests in public education. In consequence, it is not new
that a scholar donated his shuyuan to the government in order to get a feudal official
position.7
An incunabular form of public–-private partnership in education was developed
in Ming Dynasty (1368–1644 A.D.). The Community Schools (She Xue in
Chinese) emerged as an institutional innovation, which offered free enlightenment
education to children. This type of school was run privately by local people but
fully subsidized by village finance.8 These grassroots schools played a vi-
tal role in popularizing primary education, and also in civilizing and moralizing the
people at the bottom of the society. At the same time, a lot of philanthropists built
up private- or community-run schools (called yixue) to provide people free primary
education. The local governments, this time, acted only as the advocators and
provided moral rather than financial support to yixue.
By Qing Dynasty, private education especially private higher education has
gradually lost its distinctive nature of being private. In fact, free writing, free
lecturing, free academic debate, and free migration of intellectuals were no longer
allowed in the late Ming Dynasty and during its transition to Qing Dynasty. Certain
Qing emperors such as Kangxi and Qianlong adopted liberal policy measures,
which facilitated the rapid quantitative and qualitative development of shuyuan.
Most other emperors, nonetheless, took conservative attitude that the academic
activities in shuyuan must be strictly limited to the Imperial Examinations of
selecting candidates for the feudal bureaucracy. The abolishment of Imperial
Examination in Late Qing Dynasty eventually brought an end to shuyuan and other
traditional formal private higher education institutions. Old-style private schools in
pre-higher education stage were gradually declined for the reason that traditional
education objectives and contents had been substantially disrupted in the era of
social reform and ideological revolution.
1.3 Private Education in Early Modern Times
The first Opium War (1839–1942 A.D.) considered as the beginning of modern
Chinese history. Qing government suffered a defeat in this war and signed the
Treaty of Nanking with the United Kingdom. According to this unequal treaty,
China was forced to open doors to western commerce, religion, culture, and edu-
cation. After this, Qing government suffered a series of military defeats and signed a
series of unequal treaties with western powers. Among a number of rights and
privileges, these treaties granted foreign countries the right of conducting mis-
sionary activities and running schools in China. Missionaries flushed into
7
The Origins of Chinese Private Education and its Development.
8
Wang (1935).
1.3 Private Education in Early Modern Times 7
China with the protection of these treaties, and they built mission schools first in
cities with foreign-trade ports and then some large interior cities.
With the spread of western culture and the decline of national sovereignty, people
who concern the future of the country criticized the old-style schools with the main
aim of cultivating feudal bureaucrat were severe. The reform of old-style schools
launched from the bottom-up. Western science and technology, as the supplemen-
tary of traditional teaching, added to the syllabus. However, before the abolition of
the imperial examination in 1905, education in traditional private and public schools
was still imperial-examination-oriented. The learning was mainly for the purpose of
entering political stratum. The real modern schools came into being later.
The period of 1840–1860s witnessed no effort of educational reform by Qing
government in order to strengthen the nation. It was not until the ruling elite
launched the Self-Strengthening Movement (also called “Westernization move-
ment,” 1861–1895), China embarked on the course of modernization of Chinese
own accord. “Self-strengtheners” advocated mercantilism and the learning of
western languages, military technology, and armaments; they built more than 30
western schools in China to cultivate talents of science, military, and languages.
The “Self-strengtheners,” on behalf of Qing government, selected 30 intelligent
school-age children every year and sent them to study abroad. The western schools
called “new schools” that strongly contrasted with old-style schools. However, the
“self-strengtheners” insisted in the conservative Confucian worldview and refused
any social reform beyond the scope of economic and military. The campaign failed
to rescue the nation from subjugation, the first top-down modernization terminated.
During this period, the mission schools continued to grow with reluctant per-
mission from Qing government. They existed as a third party, neither public nor
private, and stayed remote from the nation’s education system. Meanwhile, a mix-
ture of western modernity and Chinese tradition became irresistible in the bottom-up
reform of old-style private schools and the top-down establishment of new schools.
From 1901 to 1911, Qing government devoted to reform, with a series of “new
policies” to embrace an all-out modernization project. Education reform was not
limited in curriculum but extended to the reformation of whole education system.
“Authorized Regulation for Schools” was promulgated in 1902, and Yin-Yan
Educational System was designed but not implemented. “Presented Regulation for
Schools” was promulgated in 1904. The government enacted the first compre-
hensive education system, Kui-Mao Educational System, which was built to replace
the traditional one, and was then carried out all around the country. Private schools
incorporated for the first time into education system for government administration
(private schools were permitted by feudal government but were not included in the
formal education system before). The abolition of imperial civil examination system
made all schools including private ones liberated from the bounds of
examination-centered teaching and learning possible. Meanwhile, China developed
national and bureaucratic capitalism, and class-based teaching system became
impossible. The modern private schools entered into a booming period.
In the field of higher education, there was a strict limit on privately run colleges.
The government bared private person or groups from engaging in running
specialized colleges, with the exception of foreigners who were free to run all levels
of mission schools or private schools in China. It was believed that foreign mis-
sionaries built first modern colleges in China based on mission schools, some of the
programs up to the higher education standards before 1911.9 In addition, this
decade was the last 10 years of Qing Dynasty whose imperial power declined
sharply even with many strong and harsh self-help initiatives. In the context of
Qing government giving up education sovereignty, it is understandable that all
levels of missionary schools could grow without any restraint and develop to an
essential part of Chinese modern education.
The Chinese bourgeois started a revolutionary war and overthrew Qing Dynasty
in 1911. China established the republican government, and the period (1911–1949)
was then called republican China era or the Nationalist era. The republican gov-
ernment set up the Ministry of Education to exert centralized administration over
schools all over the country. It was in this period that the administration of private
education became highly systematic and institutionalized. At least four aspects
initiatives deserved to get attention.
First, private education was given equal legal status as public education, and
private schools were no longer treated as supplementary in national education
system. In 1912, the Ministry of Education issued Regulations on Public and
Private Schools, specifying that public and private schools equalled to each other in
terms of providing education services. The establishment, rectification, and abol-
ishment of private schools shall submit to the Minister for approval. China issued
“Regulations on Private Schools” in 1913 first, replenished in 1914, and revised
many times hereafter.10 This decree stipulated the adoption of board of trustees in
private schools and the strategy of decentralizing educational administration with
the central government responsible for private higher education, provincial gov-
ernments for secondary education, and county governments for primary education.
Second, the private participation in education was vigorously
encouraged. Government guaranteed the preferential policies for private education.
China issued “Regulations of Rewarding for Education Donations” in 1913, and
released several regulations on allocations of grants and subsidies for private
schools subsequently. Laws regulated on the following and many other issues. For
instance, how private schools became qualified for tax reduction or exemption?
How to use the land to run private schools? How education philanthropist got
reward by the government? According to the first and the second education year-
book of the republican China government, the funding of private colleges and
universities increased from 14.242 million in 193111 to 484.904 million in 1946.12
9
Hayhoe (2004).
10
Yao (2009).
11
Taiwan Department of Education Republic of China Education Yearbooks Compilation com-
mittee (1991a).
12
Taiwan Department of Education Republic of China Education Yearbooks Compilation com-
mittee (1991b).
1.3 Private Education in Early Modern Times 9
This incensement partly caused by the currency debasement and inflation, it could
not be denied that the effectiveness’s of private education social donations were
noticeable and remarkable.
Third, private vocational education was recognized and developed as an
essential part of education system. “Decrees on Industrial Schools” (1913) defined
“private industrial school” as industrial school established by private person or
private legal person. The “industrial school” was renamed as “vocational school” in
“Draft of the School System Reform” (1922), and private vocational education was
legitimized for the first time in Chinese legal framework. In 1934, the Ministry of
Education issued “Compilation of Subject-based Curriculum, Syllabus and Device
Profile in Vocational Schools,” the unified vocational education curriculum stan-
dard was then established. Fourth, the government reclaimed education sovereignty
gradually, the missionary schools were sinicized and secularized, and then were
integrated to the private education. In view of the unequal treaties signed by Qing
government, the number of missionary schools increased sharply, and Christianity
spread in China stunningly. Chinese student organizations, educational organiza-
tions (Chinese Association for Education Promotion as the most active one), and
social activists advocated for separating education from religion called on the
republican government to make missionary schools under control. The government
promulgated Measures of Foreign Donation Request for Approval of Running
Schools (1925) to request all foreigners-run schools reregistered in government
agencies, which included the government administration of missionary schools into
“Revised Regulations on Private Schools” (1926) to define the missionary schools
as private in nature instead of the third party, neither public nor private as before.
Though missionary schools reluctant to register and manage by Chinese govern-
ment, the majority of missionary schools did what the government required to do.
As a result, Chinese were able to take seats on the board of trustees of mis-
sionary schools as required by “Memorandum of Private School Board of Trustees”
(1926), the percentage of Christians in students and teachers began to decrease. The
government engagement in missionary school’s expenditure, teaching and admin-
istration deepened while missionary schools had their positions in Chinese edu-
cation system, and the position enhanced significantly.13 There were 13 Christian
universities in the Republican China period, and the main parts of them were
inherited by universities until today, in spite of several times of department ad-
justments, merging, and reorganization. For example, Yenching University as the
predecessor of Peking University, Shantung Christian University as the predecessor
of Shantung University, Dongwu University as the predecessor of Suzhou
University, University of Shanghai as the predecessor of Shanghai Science and
Technology University, Lingnan University as the predecessor of South China
University of Technology, etc.
In addition to missionary colleges and universities, dedicated educators who
raised funds by themselves established a lot of Chinese colleges and universities.
13
Duan (2011).
For example, Zhang Boling founded Nankai higher school and then expanded into
Nankai University, which is now one of the most famous universities in China.14
The main source of funding was individual donation. Zhang raised funding started
with his friends, and then extended the fundraising to military leaders, politicians,
and celebrities. With donated lands and funds and great supports from different
sectors of the society, Nankai University successfully survived after years of
anti-Japanese war and Chinese civil war.15
An interesting thing was that the public/private boundary was again blurred, and
the definition of private/public school changed greatly. At least, in the field of higher
education, private colleges and universities were those founded by individuals and
with individual donations, while public ones were those founded by societies with
collective funds. Thus, Nankai was formally called “Private Nankai University”
before 1949. However, Fudan University, the first higher education institution
founded by Chinese citizen, shifted its official name from “Fudan Public School” to
“Private Fudan University” (1917), and then to “State-run Fudan University” (1941).
Though this period of Chinese history had been plagued by frequent misfortunes and
wars, these universities, especially privately funded universities developed vigor-
ously and laid the foundation for Chinese modern higher education.
1.4 Private Education in the New China
After the Chinese Communist Party (CCP) triumphed in the civil war and established
the People’s Republic of China (PRC) in 1949, the political and social life in China
stepped into a new stage. At that time, private sector had a large share of the national
education system. The number of students was fabulous. Though the accurate
statistics of all levels of private schools was missing, the data of higher education was
available. There were 81 private colleges and universities, accounting for 39.5% of
the total higher education institutions.16These private colleges and universities
clustered mainly in cities where economy, culture, and education developed well.
Taking Shanghai, the most vigorous economic zone, as an example, there were 40
colleges and universities in total, among which 30 of them were private.17
In the early days of the New China, the government proposed to protect and
reform private schools. Given the fact that private schools were very complex in their
funding resources (some of them were supported by Christian Church, some were by
warlords, and some were by patriotic personage), the reform strategies were quite
different. In 1950, the central government started the socialist transformation in
education. Missionary schools and foreigners-founded schools transformed to either
14
Fairbank (1986).
15
Zhi (2012).
16
Yu (1994).
17
Mao and Shen (1989).
1.4 Private Education in the New China 11
state-run or Chinese-run with governmental support. Foreign capital has been ban-
ned in Chinese education since then. In 1952, China launched all levels of public
schools’ full-scale nationalization policy. With rounds of school merger, relocating,
and rebranding, China took private primary and secondary schools into public
ownership in 1956. In the wave of nationwide reshuffling of higher education dis-
ciplines and departments in 1952, missionary and Chinese-run private colleges and
universities either upgraded, reoriented, or merged with public universities. All
higher education institutions with private elements transferred to public ownership
finally. The development of private education halted; there is a long blank in the
history of private engagement in education.
After the reform and opening-up policy in 1978, the ban on private education was
gradually lifted. With the introduction and development of market economy in
socialist system, Chinese government carried out coordinated reforms in social,
political, and educational fields. To meet the growing public expectations of
receiving higher education, the government enacted “Tentative Measures of
Self-taught Higher Education Examination System” policy in 1981, and put it into
trial run in Beijing, Tianjin, and Shanghai. This enactment defined a new type of
private schooling, which required students to conduct self-study, to seek academic
help from nongovernmental education organizations, and to earn higher education
degrees through Higher Education Self-Study Examination System. The early 1980s
witnessed a wave of tutorial schools upgrading as degree-offering higher education
institutions, among which the Chinese Society University founded in 1982 was
generally recognized as the first private university in the New China. Encouraging
by favorable policy environment, private basic education began sprouting as well.
The government embarked on structural reform in the education field and moved
on from the principle of “education serving for proletariat politics” to the one that
education should serve the interests of economic growth. This reform rhymed with
a series of laws and regulations. China promulgated Decision of the Central
Committee of the CCP on Education System Reform in 1989, putting forward
explicitly that “to encourage enterprises, citizens and other social forces to engage
in running schools.” In 1992, China issued Decisions on Accelerating the
Development of Tertiary Industry; education clearly classified in the tertiary sector
of economy. Given the facts that Chinese prefer saving to consumption, while they
were never grudge to spend money on Children’s education, China made a national
strategy to stimulate consumption and boost people’s demands on education so as
to facilitate the growth of the economy. Under the influence of these factors, some
places explored education industrialization or privatization approach, while the
debate over it was fierce and has been increasingly heated over years. In 1999,
China launched the CCP Central Committee’s and State Council’s Decisions on
Deepening Education Reform and Promoting Quality-oriented Education, which
rethought private schools as equal as public ones. Private sector was supposed to
function not only as the supplementary to public sector but also as the mainstay of
education causes. In 2003 and 2004, China published the first specialized law on
private education titled Private Education Promotion Law and the supporting
Regulations on the Implementation of the Private Education Promotion Law,
respectively. Both laws stipulated that the development of private education was of
public social benefits, and all private schools were non-profit legal persons.
Nevertheless, the founders and sponsors of private schools could reward with
“reasonable returns” as bonus and incentives. With all of these as incentives, the
expansion of private schools in China was spectacular and bristled constantly with
new problems.
There are two issues to be stated at the end of this chapter. The first one is China
revised Private Education Promotion Law (2003) in 2016. According to the latest
law which will be enacted in the near future, for-profit private preschool education
institutions and higher education institutions will be legitimized in Chinese legal
system. It might conceivably attract social funds and even foreign funds to invest in
legally permitted for-profit kindergartens and colleges, though running schools not
for philanthropic giving but for profit-seeking already existed in spades. The second
one is that private education is called “minban” education in the New China. The
public/private distinction transformed from “gong”/“si” to “state-run”/
“civilian-run.” The long tradition of joint development of public and private edu-
cation continues in China, although the implications of “private” and “private
education” have changed and keep changing in historical and political senses.
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Chapter 2
Private Education Development
at a Glance Since 2003
According to the data (Educational Statistics Yearbook of China, China Educational

Finance Statistical Yearbook, data provided by Ministry of Education of the
People’s Republic of China etc.), we collected and sorted out the numbers from
2003 to 2015 (some years have data missing) in 31 provinces, autonomous regions
and municipalities directly under the central government. The research covers four
education periods, they are private higher education (private colleges/universities,
private higher vocational schools), private secondary education (private senior high
schools, private junior high schools, private secondary vocational schools), private
primary education (private primary schools), and private preschool education
(private kindergartens).
2.1 Changes in the Number of Private Schools

from 2003 to 2015
2.1.1 The Number of Private Colleges/Universities

Nationwide Grows Continuously, and the Proportion
Private Colleges/Universities Rose First and Then
Went Down
In 2004, the number of private colleges/universities nationwide has grown con-

tinuously. The years of 2004–2007 witnessed steady growth. From 2007 to 2008,
the number of private colleges/universities has been increasing dramatically. There
were 343 newly increased private colleges/universities. The years from 2008 to
2015 are in a stable growth stage again. From 2003 to 2012, the proportion of
private colleges/universities accounting for the total colleges/universities nation-
wide is similar to the growth trends of private colleges/universities, while 2012–
2015 saw a slight decline (Fig. 2.1).

14 2 Private Education Development at a Glance Since 2003
Fig. 2.1 Changes in the Number and Proportion of Private Colleges/Universities Nationwide
(2003–2015). Source Educational Statistics Yearbook of China (2003–2015), Data Compiled from
Ministry of Education of PRC
2.1.2 The Number of Private Independent Colleges

Nationwide Increased First and Then Decreased,
and the Proportion of Private Independent Colleges
Fluctuated
From 2004 to 2015, the number of private independent colleges increased first and
then decreased. During the period between 2004 and 2010, the total number of
independent colleges was relatively stable, increasing from 249 to 323, and then
reducing to 283 in 2015. The proportion of independent colleges in total colleges/
universities nationwide alternated from 2004 to 2015, showing a steady escalating
trend from 2004 to 2006 and a steady downward trend from 2006 to 2011. After
rising from 2011 to 2012, it began to decline from 2012 to 2015 (Fig. 2.2).
2.1.3 The Number and Proportion of Private Senior High

Schools Nationwide Showed Wavelike Changes
From 2003 to 2015, the number of private senior high schools showed a wavelike
change, which increased from 2679 in 2003 to 3245 in 2006. The years from 2007
to 2012 saw a slow downward trend, decreasing from 3101 to 2371. From 2012 to
2015, it slowly rose to 2442. The proportion of private senior high schools in total
2.1 Changes in the Number of Private Schools from 2003 to 2015 15
Fig. 2.2 Changes in the Number and Proportion of Private Independent Colleges Nationwide
(2004–2015). Source Educational Statistics Yearbook of China (2003–2015), and Data Compiled
from Ministry of Education of PRC
senior high schools nationwide also showed a similar trend. There was a rising
trend from 2003 to 2006 and from 2011 to 2015. From 2006 to 2011, we can see a
downward trend (Fig. 2.3).
2.1.4 The Number and the Proportion of Private Secondary

Vocational Schools Nationwide First Increased
and Then Decreased
The number of private secondary vocational schools showed a trend of incensement

first followed by a decrease, among which it grew steadily from 2003 to 2008,
increasing from 1382 to 3234. Since 2008, it has shrunk gradually, and reduced to
2343 in 2014. The proportion of private secondary vocational schools accounting
for the total private secondary vocational schools has been on a gentle upward trend
from 2003 to 2010. The year of 2011 saw a decrease, shrinking to 19.87% in 2015
(Fig. 2.4).
Fig. 2.3 Changes in the Number and Proportion of Private Senior High Schools Nationwide
Fig. 2.4 Changes in the Number and Proportion of Private Secondary Vocational Schools (2003–
2015). Source Educational Statistics Yearbook of China (2003–2015), and Data Compiled from
2.1 Changes in the Number of Private Schools from 2003 to 2015 17
2.1.5 The Number of Private Junior High Schools Showed

a Fluctuating Trend and the Proportion It Takes
Increased
The number of private junior high schools nationwide fluctuated from 2003 to
2014, and the proportion it takes increased gradually. The private junior high
schools grew rapidly from 2003 to 2005, while 2006–2010 showed a slow upward
trend. It went up year by year from 2011 to 2015. Compared with 2013, it rose to
341 in 2015. The proportion it takes has been on an upward trend from 2003 to
2013, rising from 5.73 to 9.31% (Fig. 2.5).
2.1.6 The Number of Private Primary Schools Showed

Wavelike Changes, and the Proportion
It Takes Continued to Rise
The number of private primary schools grew steadily from 5676 in 2003 to 6242 in
2005 and then decreased to 5186 in 2011. The number trended up since 2011 and
reached 5859 in 2015 markedly. Its proportion in total primary schools has been on
an obvious rise during the period between 2003 and 2015, among which it mounted
to 3.08% in 2015 (Fig. 2.6).
Fig. 2.5 Changes in the Number and Proportion of Private Junior High Schools Nationwide
Fig. 2.6 Changes in the Number and Proportion of Private Primary Schools Nationwide (2003–
2.1.7 The Number of Private Kindergartens Continued

to Increase, and the Proportion Increased First
and Then Decreased
The number of private kindergartens nationwide was markedly trending up from

55,536 in 2013 to 139,282 in 2015. The proportion in total kindergartens showed an
upward trend and then a downward trend, in which it rose steadily from 2003 to
2011, when it reached 69.21% and slowly fell to 65.44% (Fig. 2.7).
2.2 The Number of Students in Private

Colleges/Universities
2.2.1 The Number of Students in Private Colleges/

Universities and the Proportion to the
Total College Students Were Growing
The number of students in private colleges/universities continued to grow from

2004 to 2015. The number of private college students showed a significant upward
trend, increasing from 76,420 to 3,833,300, showing an increase of 50 times. The
proportion of private college students in total college students was also markedly
2.2 The Number of Students in Private Colleges/Universities 19
Fig. 2.7 Changes in the Number and Proportion of Private Kindergartens Nationwide (2003–
Ministry of Education of PRC Changes in the Number of Students in Private Schools Nationwide
(2003–2014)
trending up, which was less than 2.1% per year from 2004 to 2007. The number in
the year 2008 was 10 times as high as in that in 2007. The percentage reached
24.31% in 2013 (Fig. 2.8).
The number of private junior college students fluctuated from 2004 to 2014,
among which the private junior college students grew steadily, increasing from
633,216 in 2003 to 1,956,961 in 2010, showing an increase of more than three
times. After that, the number began to drop to 1,860,572 in 2013 and rose to
2,275,200 in 2015. The proportion it took in the total junior college students
increased steadily from 2003 to 2010, slightly decreased in 2012, and showed an
upward trend in 2013.
2.2.2 The Number and Proportion of Private Higher

Education Enrollment Nationwide Witnessed
a Wavelike Change
From 2004 to 2015, the number of enrollment in private colleges/universities

presented a large fluctuation, among which there was a steady growth trend from
2004 to 2007 and a breakthrough trend from 2008 to 2010. It increased and
decreased alternately from 2011 to 2015, in which it dropped to 689,278 in 2011,
soared to 942,516 in 2012, reduced to 918,373 in 2013, and grew to 922,982 in
2014 again. The proportion of private undergraduate enrollment to the total college
Fig. 2.8 Changes in the Number and Proportion of Private College Students Nationwide (2004–
enrollment also showed a trend of fluctuation, among which the proportion was less
than 3% from 2004 to 2007, reduced to 19.33% after 2011, and reached a maximum
of 25.20% in 2012.
Private junior college student enrollment also showed a trend of volatility from
2004 to 2015, among which there was a rapid growth trend from 2004 to 2008, an
alternation of increase and decrease from 2008 to 2015, in which the private junior
college students was 812,900. The proportion of private junior college enrollment
accounting for the total college enrollment nationwide has shown a steady growth
trend from 2004 to 2008, among which there was a gradual decline from 2008 to
2012, and it has been picked up since 2013 (Fig. 2.9).
2.2.3 The Number of Private College Graduates Continued

to Grow, and the Proportion in Total Graduates
Nationwide Rose and Fell Alternately
The number of private college graduates showed a rapid growth trend from 2004 to
2015. It was in the rapid growth stage from 2004 to 2007, when private college
graduates reached 30,176 and then showed a breakthrough trend from 2008 to
2015, reaching 88,400 in 2015. It showed an increase of more than 270 times higher
than the number in 2004. Meanwhile, the proportion of private college graduates
accounting for the total college graduates rose dramatically from 0.27% in 2004 to
24.66% in 2015 (Fig. 2.10).
2.2 The Number of Students in Private Colleges/Universities 21
Fig. 2.9 Changes in the Number and Proportion of Private Colleges/Universities Enrollment
Nationwide (2004–2015). Source Educational Statistics Yearbook of China (2003–2015), and
Data Compiled from Ministry of Education of PRC
The number of private junior college graduates showed a rapid growth, followed
by the trend of decline from 2004 to 2015. Since 2005, private junior college
graduates exceeded 10 million for the first time, reaching 140,106. It mounted to
649,902 in 2011, fell to 580,945 in 2014, and then grew to 628,400 in 2015.
Meanwhile, the proportion it takes in the total junior college graduates showed a
fluctuating trend, among which it soared dramatically from 7.09% in 2003 to
17.92% in 2008. Since 2009, we could see a decline, followed by a rise. After then,
it reached 22.44% in 2013 and fell to 19.50% in 2015 (Fig. 2.10).
2.3 The Number of Private Senior High School Students

and the Proportion It Takes in Total Senior High
School Students Grew Rapidly, Followed by a
Stable Stage
2.3.1 The Number of Students in Private Senior High

Schools Nationwide and the Proportion It Takes
Developed Steadily
Private senior high school students increased rapidly from 2003 to 2006, reaching
2,477,160 in 2006. The number remained stable from 2007 to 2015, and reached
2,386,542 in 2014. The proportion of students in private senior high schools in the
total senior high school students nationwide fluctuated regularly, among which it
Fig. 2.10 Changes in the Number and Proportion of Private College Graduates Nationwide
Fig. 2.11 Changes in the Number and Proportion of Private Senior High School Students
2.3 The Number of Private Senior High School Students … 23
expanded rapidly from 2003 to 2006, maintained at 9.5% from 2006 to 2013, and
reached 10.82% in 2015 (Fig. 2.11).
2.3.2 The Number and Proportion of Enrollment in Private

Senior High Schools Nationwide Kept Stable Basically
From 2003 to 2015, the number and proportion of enrollment in private senior high
schools in China showed a stable upward trend. The number of students enrolled
increased rapidly from 2003 to 2005 and the tendency gradually slowed down from
2006 to 2013, during which it peaked at 827,299 in the following year 2015. The
proportion it took in the total senior high school enrollments nationwide presented a
steady increasing trend between 2003 and 2006, and then kept almost stable until
2013, basically maintaining between 9.7 and 10%. The year 2015 saw a break-
through, up to 11.68% (Fig. 2.12).
2.3.3 The Number and Proportion of Graduates

in Private Senior High Schools Nationwide
Had a Fluctuating Increase
From 2003 to 2015, the number of graduates in private senior high schools in China
showed a fluctuating change. The period from 2003 to 2008 witnessed a sharp rise,
1000000 14.00%
900000 11.86%
12.00%
800000 10.43% 10.39%
10.42% 9.91% 9.86% 9.82% 9.72% 9.70%
9.56% 9.80% 9.68%
700000 10.00%
8.44%
600000
8.00%
500000 914794 945100
909045 6.00%
400000 833008 835370 827299
785088 825634 821302
813687 798192
300000 809462
634945 4.00%
200000
2.00%
100000
0 0.00%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fig. 2.12 Changes in the Number and Proportion of New Student Enrollment in Private Senior
High Schools Nationwide (2003–2015). Source Educational Statistics Yearbook of China (2003–
2015), and Data Compiled from Ministry of Education of PRC
which peaked at 789,064. In the following years between 2009 and 2010, it had a
declining stage. The 4 years from 2011 to 2015 fluctuated up to 773,912. Generally
speaking, the proportion it takes in the total graduates from senior high schools in
China had an increase before a decline, which then tended to remain steady.
Specifically, there was an increasing trend between 2003 and 2009. The following
years from 2010 to 2012 saw a slowly decreasing trend. In 2015, the proportion
finally went up to 9.7% (Fig. 2.13).
2.4 The Number and Proportion of Students in Private

Secondary Vocational Schools Increased at First
and Then Showed a Decreasing Trend

Secondary Vocational Schools Increased Before
a Decreasing Trend
From 2003 to 2015, the number of students in private secondary vocational schools
showed an increase first followed by a decline. The years between 2003 and 2009
witnessed a gradual increase and the period from 2009 to 2015 experienced a steady
Fig. 2.13 Changes in the Number and Proportion of Graduates in Private Senior High schools
2.4 The Number and Proportion of Students in Private Secondary … 25
decline each year. The year of 2009 was a special year, which had the highest
number of students at 3,180,957. The proportion of students in private secondary
vocational schools showed a fluctuating change of the nationwide students in
secondary vocational schools throughout the period, among which the year 2009
was a turning point, showing a change from an increase to a decrease (Fig. 2.14).
2.4.2 The Fluctuation in the Number and Proportion

of Enrollment in Private Secondary Vocational
Schools
From 2003 to 2015, the number of new students enrolled in private secondary
vocational schools increased at first, and then had a declining trend. The years
between 2003 and 2009 saw an obvious increasing trend, which was followed by a
noticeable decrease until 2015. The proportion of new students enrolled in private
secondary vocational schools rose rapidly during the period from 2003 and 2008,
when it peaked at 15.05%. The figure steadily decreased to 11.80% before an
obvious upswing in 2015 (Fig. 2.15).

Secondary Vocational Schools in China Increased
First and Then Decreased
From 2003 to 2015, both the number of graduates in private secondary vocational
schools and the proportion accounting for the nationwide secondary vocational
Fig. 2.14 Changes in the Number and Proportion of Students in Private Secondary Vocational
Schools Nationwide (2003–2015). Source Educational Statistics Yearbook of China (2003–2015),
and Data Compiled from Ministry of Education of PRC
Fig. 2.15 Changes in the Number and Proportion of New Student Enrollment in Private
Secondary Vocational Schools Nationwide (2003–2015). Source Educational Statistics Yearbook
of China (2003–2015), and Data Compiled from Ministry of Education of PRC
school graduates had a first increase, followed by a decline. Between 2003 and
2015, graduates in private secondary vocational schools were obviously less than
ever. In 2010, the number was up to 967,147 and it steadily declined from 2011 to
629,156 in 2015. The percentage of graduates in private secondary vocational
schools of the total showed an upward trend, reaching up to 14.54% in 2010, which
was followed by a sharp decrease to 11.08% until 2015 (Fig. 2.16).
2.5 The Number and Proportion of Students

in Private Junior High Schools Had a
Continuous Rise
2.5.1 The Number and Proportion of Students

in Private Junior High Schools Had a
Continuous Rise
From 2003 to 2015, the number of students in private junior high schools had a
steady progressive increase from 2,565,747 to 5,029,300. The proportion of stu-
dents in private junior high schools showed a noticeable upward trend from 3.88 to
11.66% of the total junior high school students (Fig. 2.17).
2.5 The Number and Proportion of Students in Private Junior … 27
Fig. 2.16 Changes in the Number and Proportion of Graduates in Private Secondary Vocational
Schools Nationwide (2003–2015). Source Educational Statistics Yearbook of China (2003–2015),
and Data Compiled from Ministry of Education of PRC
Fig. 2.17 Changes in the Number and Proportion of Private Junior High School Students
2.5.2 Both the Number and the Proportion

of the Enrollment of Private Junior
High Schools Kept Growing
From 2003 to 2015, the enrollment of private junior high schools showed an
obvious trend of growing from 938,817 to 1,707,300. Similarly, the proportion it
took in all general junior high schools nationwide increased from 4.28 to 12.01%
over the years (Fig. 2.18).
2.5.3 The Number and Proportion of Graduates

from Private Junior High Schools Kept Growing
From 2003 to 2015, the number of graduates from private junior high schools
showed an obvious trend of growing from 534,789 to 1,421,784. Similarly, the
proportion it took in all general high schools nationwide increased from 2.68% to
8.08% over the years (Fig. 2.19).
2.6 The Number and Proportion of Students in Private

Primary Schools Kept Growing
2.6.1 The Number of Students in Private Primary Schools

Nationwide
From 2003 to 2015, the number of students in private primary schools showed an
obvious trend of growing from 2,749,341 to 7,138,200. Similarly, the proportion it
took in all primary schools nationwide increased from 2.35% to 7.36% over the
years (Fig. 2.20).
2.6.2 The New Student Enrollment of Private Primary

Schools Kept Growing and so Did the Proportion It
Takes Nationwide
From 2003 to 2015, the enrollment of private primary schools showed an obvious
trend of growing from 474,421 to 1,243,600. Similarly, the proportion it took in all
general primary schools nationwide increased from 2.59% to 7.19% over the years
(Fig. 2.21).
2.6 The Number and Proportion of Students in Private Primary … 29
Fig. 2.18 Changes in the Number and Proportion of New Student Enrollments in Private Junior
High Schools (2003–2015). Source Educational Statistics Yearbook of China (2003–2015), and
Fig. 2.19 Changes in the Number and Proportion of Graduates from Private Junior High Schools
Fig. 2.20 Changes in the Number and Proportion of Students in Private Primary Schools (2003–
2.6.3 The Number of Graduates from Private Primary

It Takes Nationwide
From 2003 to 2015, the number of graduates from private primary schools showed
an obvious trend of growing from 374,728 to 1,101,053. Similarly, the proportion it
took in all general primary schools nationwide increased from 1.65% to 8.58% over
the years (Fig. 2.22).
2.7 The Number of Students in Private Kindergartens

Nationwide
2.7.1 The Number of Students in Private Kindergartens

Kept Growing Steadily and so Did the Proportion
It Takes Nationwide
From 2003 to 2015, the number of students in private kindergartens showed an

2.7 The Number of Students in Private Kindergartens … 31
Fig. 2.21 Changes in the Number and Proportion of New Student Enrollments in Private Primary
Schools (2003–2015). Source Educational Statistics Yearbook of China (2003–2015), and Data
Compiled from Ministry of Education of PRC
took in all kindergartens nationwide increased rapidly to over 50% in 2012 and to
53.99% in 2015 (Fig. 2.23).
2.7.2 The Enrollment of Private Kindergartens Kept

Growing Steadily and so Did the Proportion
It Takes Nationwide
From 2003 to 2015, the enrollment of private kindergartens showed an obvious

trend of growing to 9,981,890, nearly four times of that in 2003. Similarly, the
proportion it took in all kindergartens nationwide increased rapidly to 49.69% in
2015, more than twice of that in 2003 (Fig. 2.24).
2.7.3 The Number of Graduates from Private Kindergartens

Kept Growing and so Did the Proportion
It Takes Nationwide
From 2003 to 2015, the number of graduates from private kindergartens showed an
Fig. 2.22 Changes in the Number and Proportion of Graduates from Private Primary Schools
Fig. 2.23 Changes in the Number and Proportion of Students in Private Kindergartens
2.7 The Number of Students in Private Kindergartens … 33
Fig. 2.24 Changes in the Number and Proportion of Enrollment of Private Kindergartens
took in all kindergartens nationwide increased rapidly from 16.65% to 46.43% over
the years (Fig. 2.25).
2.8 Private School Students During Different Periods

by Province/Autonomous Region/Municipality
2.8.1 Private Colleges and Universities and Students

In 2014, Jiangsu, Guangdong, Hubei, Shandong, and Henan were the five provinces
with the largest number of private colleges and universities. Table 2.1 shows the
number of private colleges and universities and students in each province/
autonomous region/municipality.
2.8.2 Private Independent Colleges and Students

In 2014, Jiangsu, Hubei, Zhejiang, Hebei, and Guangdong were the five provinces
with the largest number in private dependent colleges (25, 24, 22, 17 and 16).
Fig. 2.25 Changes in the Number and Proportion of Graduates from Private Kindergartens
Table 2.2 presents the number of private independent colleges and students in each
province/autonomous region/municipality.
2.8.3 Private Senior High Schools and Students

In 2014, Henan, Anhui, Zhejiang, Guangdong, and Shanxi were the five provinces
with the largest number of private senior high schools. Table 2.3 demonstrates the
number of private senior high schools and students in each province/autonomous
region/municipality.
2.8.4 Private Secondary Vocational Schools and Students

In 2014, Hunan, Henan, Sichuan, Hebei, and Jiangxi were the five provinces with
the largest number of private secondary vocational schools. Table 2.4 shows the
number of private secondary vocational schools and students in each province/
2.8 Private School Students During Different Periods … 35
Table 2.1 Private Colleges/Universities and Students by Province/Autonomous Region/

Municipality
Province Number of Number % of all private % of all students in
private colleges of college colleges and private colleges and
and universities students universities universities
Jiangsu 52 395,161 7.15 6.88
Guangdong 52 580,385 7.15 10.10
Hubei 43 406,983 5.91 7.08
Shandong 39 338,758 5.36 5.90
Henan 37 329,891 5.09 5.74
Zhejiang 36 291,413 4.95 5.07
Fujian 36 211,130 4.95 3.67
Hebei 35 341,663 4.81 5.95
Liaoning 34 195,634 4.68 3.41
Sichuan 33 335,088 4.54 5.83
Anhui 31 180,280 4.26 3.14
Hunan 31 221,525 4.26 3.86
Jiangxi 30 240,428 4.13 4.18
Shaanxi 30 303,534 4.13 5.28
Chongqing 23 179,486 3.16 3.12
Guangxi 21 141,323 2.89 2.46
Shanghai 20 92,228 2.75 1.61
Yunnan 20 149,883 2.75 2.61
Heilongjiang 18 106,539 2.48 1.85
Jilin 16 138,040 2.20 2.40
Beijing 15 68,317 2.06 1.19
Shanxi 15 122,195 2.06 2.13
Tianjin 11 77,172 1.51 1.34
Guizhou 11 82,312 1.51 1.43
Inner 10 22,087 1.38 0.38
Mongolia
Xinjiang 9 29,843 1.24 0.52
Hainan 7 67,955 0.96 1.18
Gansu 7 60,280 0.96 1.05
Ningxia 4 32,214 0.55 0.56
Qinghai 1 3739 0.14 0.07
Source Data compiled from Ministry of Education of PRC
2.8.5 Private Junior High Schools and Students

In 2014, Guangdong, Henan, Guizhou, Anhui, and Shandong were the five pro-
vinces with the largest number of private junior high schools. Table 2.5 shows the
Table 2.2 Independent Colleges and Students by Province/Autonomous Region/Municipality

Province Number of % of all Province Number of % of all
independent independent independent independent
colleges colleges colleges colleges
Jiangsu 25 8.83 Shanxi 8 2.83
Hubei 24 8.48 Henan 8 2.83
Zhejiang 22 7.77 Guizhou 8 2.83
Hebei 17 6.01 Yunnan 7 2.47
Guangdong 16 5.65 Jilin 6 2.12
Hunan 15 5.30 Chongqing 6 2.12
Jiangxi 13 4.59 Beijing 5 1.77
Liaoning 12 4.24 Gansu 5 1.77
Shaanxi 12 4.24 Xinjiang 5 1.77
Anhui 11 3.89 Inner 2 0.71
Mongolia
Shandong 11 3.89 Heilongjiang 2 0.71
Tianjin 10 3.53 Shanghai 2 0.71
Sichuan 10 3.53 Ningxia 2 0.71
Fujian 9 3.18 Qinghai 1 0.35
Guangxi 9 3.18
Table 2.3 Private Senior High Schools and Students by Province/Autonomous Region/Municipality
private senior of senior high private senior high
high schools students schools schools
Henan 208 259,589 8.52 10.88
Anhui 181 194,103 7.41 8.13
Zhejiang 162 168,445 6.63 7.06
Guangdong 151 145,429 6.18 6.09
Shanxi 150 161,941 6.14 6.79
Hubei 119 96,215 4.87 4.03
Jiangxi 118 125,039 4.83 5.24
Shandong 101 136,022 4.14 5.70
Jiangsu 100 149,716 4.10 6.27
Hunan 98 93,161 4.01 3.90
Hebei 94 103,305 3.85 4.33
Guizhou 94 75,836 3.85 3.18
Liaoning 93 78,427 3.81 3.29
Shaanxi 92 83,178 3.77 3.49
Sichuan 88 95,366 3.60 4.00
Guangxi 84 78,277 3.44 3.28
(continued)
Table 2.3 (continued)

private senior of senior high private senior high
high schools students schools schools
Fujian 77 67,456 3.15 2.83
Beijing 63 16,809 2.58 0.70
Yunnan 60 48,128 2.46 2.02
Shanghai 51 13,589 2.09 0.57
Gansu 49 34,874 2.01 1.46
Heilongjiang 34 25,153 1.39 1.05
Inner 33 13,646 1.35 0.57
Mongolia
Tianjin 31 13,408 1.27 0.56
Xinjiang 27 16,021 1.11 0.67
Hainan 24 18,121 0.98 0.76
Jilin 23 30,050 0.94 1.26
Chongqing 19 34,170 0.78 1.43
Qinghai 10 3972 0.41 0.17
Ningxia 8 6341 0.33 0.27
Tibet 0 755 0.03
Table 2.4 Private Secondary Vocational Schools and Students by Province/Autonomous Region/
Municipality
private secondary of secondary private secondary
vocational students vocational vocational schools
schools schools
Hunan 269 161,871 9.42 6.01
Henan 254 285,873 8.89 10.62
Sichuan 247 395,147 8.65 14.68
Hebei 234 149,184 8.19 5.54
Jiangxi 177 145,593 6.20 5.41
Shandong 155 161,692 5.4 6.01
Anhui 147 164,437 5.15 6.11
Shaanxi 145 143,825 5.08 5.34
Guangdong 134 236,270 4.69 8.78
Zhejiang 109 97,928 3.82 3.64
Guangxi 108 115,717 3.78 4.30
Shanxi 107 65,576 3.75 2.44
Liaoning 100 33,838 3.50 1.26
Hubei 91 78,193 3.19 2.90
82 33,795 2.87 1.26
(continued)

private secondary of secondary private secondary
vocational students vocational vocational schools
schools schools
Inner
Mongolia
Jilin 82 34,057 2.87 1.26
Heilongjiang 72 38,818 2.52 1.44
Guizhou 62 41,267 2.17 1.53
Yunnan 56 92,234 1.96 3.43
Fujian 52 49,339 1.82 1.83
Gansu 33 25,371 1.16 0.94
Hainan 32 25,364 1.12 0.94
Chongqing 32 43,516 1.12 1.62
Jiangsu 28 45,870 0.98 1.70
Beijing 20 6639 0.70 0.25
Tianjin 7 4824 0.25 0.18
Xinjiang 7 8735 0.25 0.32
Shanghai 6 2955 0.21 0.11
Qinghai 6 1460 0.21 0.05
Ningxia 2 3124 0.07 0.12
Table 2.5 Private Junior High Schools and Students by Province/Autonomous Region/
Municipality
Province Number of Students in % of all % of all students in
private junior private junior private junior private junior high
high schools high schools high schools schools
Guangdong 870 698,193 18.42 14.34
Henan 693 657,040 14.68 13.49
Guizhou 317 141,251 6.71 2.90
Anhui 314 421,141 6.65 8.65
Shandong 268 304,317 5.68 6.25
Zhejiang 228 217,148 4.83 4.46
Hebei 212 275,757 4.49 5.66
Shanxi 204 242,730 4.32 4.98
Hunan 190 260,079 4.02 5.34
Sichuan 184 221,721 3.90 4.55
Jiangsu 167 273,068 3.54 5.61
Jiangxi 161 141,516 3.41 2.91
Guangxi 153 93,253 3.24 1.91
Hubei 114 115,814 2.41 2.38
(continued)

private junior private junior private junior private junior high
high schools high schools high schools schools
Shaanxi 97 134,437 2.05 2.76
Hainan 83 29,791 1.76 0.61
Yunnan 82 62,869 1.74 1.29
Chongqing 64 84,572 1.36 1.74
Fujian 63 144,500 1.33 2.97
Shanghai 56 60,776 1.19 1.25
Inner 39 30,981 0.83 0.64
Mongolia
Heilongjiang 38 38,579 0.80 0.79
Jilin 37 72,180 0.78 1.48
Liaoning 36 59,688 0.76 1.23
Beijing 21 26,086 0.44 0.54
Gansu 19 15,242 0.40 0.31
Xinjiang 15 10,298 0.32 0.21
Tianjin 11 22,794 0.23 0.47
Ningxia 5 12,989 0.11 0.27
Tibet 2 309 0.04 0.01
Qinghai 1 899 0.02 0.02
number of private junior high schools and students in each province/autonomous

region/municipality.
2.8.6 Private Primary Schools and Students by

Province/Autonomous Region/Municipality
In 2014, Henan, Guangdong, Hebei, Guizhou, and Anhui were the five provinces
with the largest number of private primary schools. Table 2.6 presents the number
of private primary schools and students in each province/autonomous region/
municipality.
2.8.7 Private Kindergartens and Students by

Province/Autonomous Region/Municipality
In 2014, Henan, Hunan, Guangdong, Jiangxi, and Sichuang were the five provinces
with the largest number of private kindergartens. Table 2.7 presents the number of
private kindergartens and students in each province/autonomous region/municipality.
Table 2.6 Private Primary Schools and Students by Province/Autonomous Region/Municipality

private primary private primary private private primary
schools schools primary schools
schools
Henan 1550 1,112,665 27.28 16.50
Guangdong 705 1,845,272 12.41 27.37
Hebei 430 393,725 7.57 5.84
Guizhou 261 158,272 4.59 2.35
Anhui 251 256,010 4.42 3.80
Sichuan 245 238,612 4.31 3.54
Shandong 240 304,704 4.22 4.52
Zhejiang 225 473558 3.96 7.02
Shaanxi 213 140,923 3.75 2.09
Jiangsu 177 301,771 3.12 4.48
Shanghai 174 156,010 3.06 2.31
Guangxi 172 153,285 3.03 2.27
Shanxi 170 174,375 2.99 2.59
Hunan 145 209,837 2.55 3.11
Yunnan 114 78,713 2.01 1.17
Chongqing 104 53,277 1.83 0.79
Fujian 94 127,133 1.65 1.89
Hainan 87 80,672 1.53 1.20
Hubei 67 102,284 1.18 1.52
Beijing 65 71,512 1.14 1.06
Jiangxi 53 127,487 0.93 1.89
Inner 32 28,596 0.56 0.42
Mongolia
Liaoning 28 40,134 0.49 0.60
Jilin 21 53,910 0.37 0.80
Xinjiang 16 16,558 0.28 0.25
Tianjin 14 15,144 0.25 0.22
Heilongjiang 9 12,724 0.16 0.19
Gansu 8 7708 0.14 0.11
Ningxia 6 4300 0.11 0.06
Qinghai 3 1083 0.05 0.02
Tibet 2 1171 0.04 0.02
Table 2.7 Private Kindergartens and Students by Province/Autonomous Region/Municipality

private private private private
kindergartens kindergartens kindergartens kindergartens
Henan 12,585 2,282,547 10.74 9.04
Hunan 11,044 1,434,527 6.75 7.93
Guangdong 10,998 2,401,059 11.30 7.90
Jiangxi 10,067 1,164,891 5.48 7.23
Sichuan 9991 1,312,707 6.18 7.17
Guangxi 8469 1,121,366 5.28 6.08
Shandong 7185 986,862 4.64 5.16
Liaoning 6699 520,767 2.45 4.81
Zhejiang 6660 1,156,050 5.44 4.78
Fujian 5357 791,747 3.73 3.85
Shaanxi 4792 812,990 3.83 3.44
Hubei 4703 861,635 4.05 3.38
Hebei 4597 740,373 3.48 3.30
Heilongjiang 4363 300,106 1.41 3.13
Anhui 4198 970,364 4.57 3.01
Yunnan 4093 632,626 2.98 2.94
Chongqing 3864 538,763 2.53 2.77
Jilin 3234 258,734 1.22 2.32
Guizhou 2836 504,417 2.37 2.04
Shanxi 2531 376,738 1.77 1.82
Inner 2242 266,932 1.26 1.61
Mongolia
Jiangsu 1794 642,054 3.02 1.29
Gansu 1586 246,122 1.16 1.14
Hainan 1563 243,930 1.15 1.12
Tianjin 962 80,375 0.38 0.69
Xinjiang 771 132,102 0.62 0.55
Beijing 532 126,947 0.60 0.38
Shanghai 532 150,035 0.71 0.38
Qinghai 515 82,625 0.39 0.37
Ningxia 471 97,393 0.46 0.34
Tibet 48 15,997 0.08 0.03
2.9 Average Private School Scales in Different

Education Periods by Province/Autonomous
Region/Municipality (2014)
2.9.1 Average Private College/University Scales

In 2014, Guangdong, Sichuang, Shaanxi, Hebei, and Henan were the top five
provinces according to the average private college/university scale. Table 2.8
demonstrates the average private college/university scale in each province/
2.9.2 Average Private Senior High School Scales

In 2014, Chongqing, Jiangsu, Shandong, Jilin, and Henan were the top five pro-
vinces according to the average private senior high school scale. Table 2.9 shows
the average private senior high school scale in each province/autonomous region/
municipality.
Table 2.8 Average Private College/University Scale by Province/Autonomous Region/

Municipality
Province Average private college/ Province Average private college/
university scale university scale
Guangdong 11161.25 Jiangsu 7599.25
Sichuan 10154.18 Yunnan 7494.15
Shaanxi 10117.8 Guizhou 7482.91
Hebei 9761.8 Hunan 7145.97
Hainan 9707.86 Tianjin 7015.64
Hubei 9464.72 Guangxi 6729.67
Henan 8915.97 Heilongjiang 5918.83
Shandong 8686.1 Fujian 5864.72
Jilin 8627.5 Anhui 5815.48
Gansu 8611.43 Liaoning 5753.94
Shanxi 8146.33 Shanghai 4611.4
Zhejiang 8094.81 Beijing 4554.47
Ningxia 8053.5 Qinghai 3739
Jiangxi 8014.27 Xinjiang 3315.89
Chongqing 7803.74 Inner 2208.7
Mongolia
2.9 Average Private School Scales in Different Education … 43
Table 2.9 Average Private Senior High School Scale by Province/Autonomous Region/
Municipality
Province Number of students in Number of private Average private
private senior high schools senior high schools senior high school
scale
Chongqing 34,170 19 1798.42
Jiangsu 149,716 100 1497.16
Shandong 136,022 101 1346.75
Jilin 30,050 23 1306.52
Henan 259,589 208 1248.02
Hebei 103,305 94 1098.99
Sichuan 95,366 88 1083.7
Shanxi 161,941 150 1079.61
Anhui 194,103 181 1072.39
Jiangxi 125,039 118 1059.65
Zhejiang 168,445 162 1039.78
Guangdong 145,429 151 963.11
Hunan 93,161 98 950.62
Guangxi 78,277 84 931.87
Shaanxi 83,178 92 904.11
Fujian 67,456 77 876.05
Liaoning 78,427 93 843.3
Hunan 96,215 119 808.53
Guizhou 75,836 94 806.77
Yunnan 48,128 60 802.13
Ningxia 6341 8 792.63
Hainan 18,121 24 755.04
Heilongjiang 25,153 34 739.79
Gansu 34,874 49 711.71
Xinjiang 16,021 27 593.37
Tianjin 13,408 31 432.52
Inner 13,646 33 413.52
Mongolia
Qinghai 3972 10 397.2
Beijing 16,809 63 266.81
Shanghai 13,589 51 266.45
Tibet 755 0
2.9.3 Average Private Secondary Vocational School Scales

by Province/Autonomous Region/Municipality (2011)
In 2011, Guangdong, Yunnan, Jiangsu, Sichuan, and the Ningxia Hui Autonomous
Region were the top five provinces according to the average private secondary
vocational school scale. Table 2.10 illustrates the average private secondary
vocational school scale in each province/autonomous region/municipality.
Table 2.10 Average Private Secondary Vocational School Scale by Province/Autonomous

Region/Municipality
private secondary secondary vocational secondary vocational
vocational schools schools school scale
Beijing 6639 20 331.95
Tianjin 4824 7 689.14
Hebei 149,184 234 637.54
Shanxi 65,576 107 612.86
Inner 33,795 82 412.13
Mongolia
Liaoning 33,838 100 338.38
Jilin 34,057 82 415.33
Shanghai 2955 6 492.50
Jiangsu 45,870 28 1638.21
Zhejiang 97,928 109 898.42
Anhui 164,437 147 1118.62
Fujian 49,339 52 948.83
Jiangxi 145,593 177 822.56
Shandong 161,692 155 1043.17
Henan 285,873 254 1125.48
Hubei 78,193 91 859.26
Hunan 161,871 269 601.75
Guangdong 236,270 134 1763.21
Guangxi 115,717 108 1071.45
Hainan 25,364 32 792.63
Chongqing 43,516 32 1359.88
Sichuan 395,147 247 1599.79
Guizhou 41,267 62 665.60
Yunnan 92,234 56 1647.04
Shaanxi 143,825 145 991.90
Gansu 25,371 33 768.82
Qinghai 1460 6 243.33
Ningxia 3124 2 1562.00
Xinjiang 8735 7 1247.86
2.9.4 Average Private Junior High School Scales

In 2014, Ningxia Hui Autonomous Region, Fujian, Tianjin, Jilin, and Liaoning
were the top five provinces according to the average private junior high school
scale. The average private junior high school scale in each province/autonomous
region/municipality can be seen in Table 2.11.
Table 2.11 Average Private Junior High School Scale by Province/Autonomous Region/
Municipality
Province Number of students in Number of private Average private junior
private junior high schools junior high schools high school scale
Ningxia 4416 5 2597.8
Fujian 47,681 63 2293.65
Tianjin 7292 11 2072.18
Jilin 24,390 37 1950.81
Liaoning 21,110 36 1658
Jiangsu 90,663 167 1635.14
Shaanxi 44,428 97 1385.95
Hunan 90,862 190 1368.84
Anhui 140,792 314 1341.21
Chongqing 30,043 64 1321.44
Hebei 101,890 212 1300.74
Beijing 8929 21 1242.19
Sichuan 76,290 184 1205.01
Shanxi 76,656 204 1189.85
Shandong 101,585 268 1135.51
Shanghai 15,088 56 1085.29
Hubei 39,798 114 1015.91
Zhejiang 79,465 228 952.4
Henan 230,976 693 948.11
Qinghai 204 1 899
Jiangxi 49,884 161 878.98
Guangdong 253,908 870 802.52
Gansu 4872 19 802.21
Inner 11,211 39 794.38
Mongolia
Yunnan 23,042 82 766.7
Xinjiang 3100 15 686.53
Guangxi 32,916 153 609.5
Guizhou 44,633 317 445.59
Hainan 9973 83 358.93
Tibet 92 2 154.5
2.9.5 Average Private Primary School Scales by Province/

Autonomous Region/Municipality
In 2014, Guangdong, Jilin, Jiangxi, Zhejiang, and Jiangsu were the top five provinces
according to the average private primary school scale. Table 2.12 is the average
private primary school scale in each province/autonomous region/municipality.
Table 2.12 Average Private Primary School Scale by Province/Autonomous Region/

Municipality
private primary schools primary schools primary school scale
Guangdong 1,845,272 705 2617.41
Jilin 53,910 21 2567.14
Jiangxi 127,487 53 2405.42
Zhejiang 473,558 225 2104.7
Jiangsu 301,771 177 1704.92
Hubei 102,284 67 1526.63
Henan 209,837 145 1447.15
Liaoning 40,134 28 1433.36
Fujian 127,133 94 1352.48
Shandong 304,704 240 1269.6
Beijing 71,512 65 1100.18
Tianjin 15,144 14 1081.71
Xinjiang 16,558 16 1034.88
Shanxi 174,375 170 1025.74
Anhui 256,010 251 1019.96
Sichuan 238,612 245 973.93
Gansu 7708 8 963.5
Hainan 80,672 87 927.26
Hebei 393,725 430 915.64
Shanghai 156,010 174 896.61
Inner 28,596 32 893.63
Mongolia
Guangxi 153,285 172 891.19
Henan 1,112,665 1550 717.85
Ningxia 4300 6 716.67
Yunnan 78,713 114 690.46
Shaanxi 140,923 213 661.61
Guizhou 158,272 261 606.41
Tibet 1171 2 585.5
Chongqing 53,277 104 512.28
Qinghai 1083 3 361
2.9.6 Average Private Kindergarten Scales by Province/

In 2014, Jiangsu, Xizang, Shanghai, Beijing, and Anhui were the top five provinces
according to the average private kindergarten scale. Table 2.13 is the average
private kindergarten scale in each province/autonomous region/municipality.
Table 2.13 Average Private Kindergarten Scale by Province/Autonomous Region/Municipality

private kindergartens kindergartens kindergarten scale
Jiangsu 642,054 1794 357.89
Xizang 15,997 48 333.27
Shanghai 150,035 532 282.02
Beijing 126,947 532 238.62
Anhui 970,364 4198 231.15
Guangdong 2,401,059 10,998 218.32
Ningxia 97,393 471 206.78
Hubei 861,635 4703 183.21
Henan 2,282,547 12,585 181.37
Guizhou 504,417 2836 177.86
Zhejiang 1,156,050 6660 173.58
Xinjiang 132,102 771 171.34
Shanxi 812,990 4792 169.66
Hebei 740,373 4597 161.06
Qinghai 82,625 515 160.44
Hainan 243,930 1563 156.07
Gansu 246,122 1586 155.18
Yunnan 632,626 4093 154.56
Shanxi 376,738 2531 148.85
Fujian 791,747 5357 147.8
Chongqing 538,763 3864 139.43
Shandong 986,862 7185 137.35
Guangxi 1,121,366 8469 132.41
Sichuan 1,312,707 9991 131.39
Hunan 1,434,527 11,044 129.89
Inner 266,932 2242 119.06
Mongolia
Jiangxi 1,164,891 10,067 115.71
Tianjin 80,375 962 83.55
Jilin 258,734 3234 80
Liaoning 520,767 6699 77.74
Heilongjiang 300,106 4363 68.78
2.10 Changes in the Number of Teachers in Private

Schools Nationwide (2003–2015)
2.10.1 Private School Teachers in Each Education Period

Increased Gradually Nationwide
2.10.1.1 The Faculty and Full-Time Teachers in Private Colleges/

Universities Increased Nationwide
During the years from 2003 to 2015, the number of full-time teachers in private
colleges/universities generally showed a gradual increasing trend, and then
decreased slightly from 2003 to 2004, then grew gently until 2007, and the growth
trend took a drastic change from 2008 to 2015. It exceeded 200,000 for the first
time, in 2008 with the number up to 202,562 and 304,817 in 2015. The proportion
of full-time teachers in private colleges/universities accounting for the total number
of full-time college teachers nationwide fluctuated, showing a slight decline from
2003 to 2004, a steady upward growth till 2007, 2008 witnessed a breakthrough,
and then a slower rise till 2015, up to 19.42%. The changes in the number of faculty
are similar to that of the full-time teachers (Fig. 2.26).
Fig. 2.26 Faculty and Full-Time Teachers in Private Colleges/Universities Nationwide (2003–
2.10 Changes in the Number of Teachers in Private … 49
2.10.1.2 The Faculty and Full-Time Teachers in Private Independent

Colleges Continued to Increase, Followed by a Gradual
Decrease Nationwide
From 2004 to 2015, the number of full-time teachers in private independent col-
leges, the proportion of full-time teachers in private independent colleges
accounting for all full-time independent college teachers nationwide, and the
number of faculty in private independent colleges showed the same trend of an
increase first, and then a decrease. All three soared to the summit in 2012, and then
began to drop year by year. In 2015, there were 132,100 full-time teachers and
176,700 faculties in private independent colleges. Meanwhile, the proportion it took
in total full-time teachers stayed at 8.41% (Fig. 2.27).
2.10.1.3 The Faculty and Full-Time Teachers in Private Senior High

Schools Showed a Trend of Fluctuation Nationwide
From 2003 to 2015, the number of full-time teachers in private senior high schools,
the proportion of full-time teachers accounting for all full-time senior high school
teachers nationwide, and the number of faculty have all shown a trend of fluctua-
tion. During the period, the number of full-time teachers showed a gradual increase,
from 201,421 in 2003 to 452,249 in 2011; simultaneously, the proportion increased
from 18.81% to 29.05%; and the number of faculty increased from 291,604 to
606,071. From 2011 to 2012, the three indexes fell sharply to 234,048, 14.67% and
Fig. 2.27 Faculty and Full-Time Teachers in Private Independent Colleges Nationwide (2004–
321,834, respectively. However, the proportion started to rise slowly in 2012 and
began to fall sharply from 2014 to 2015 (Fig. 2.28).
The faculty and full-time teachers in private secondary vocational schools
increased first and then decreased. From 2003 to 2015, the number of full-time
teachers in private secondary vocational schools, the proportion of full-time
teachers accounting for all full-time secondary vocational school teachers nation-
wide, and the number of faculty have shown a trend of increasing first and then
decreasing. During the period, the number of full-time teachers grew from 36,585 in
2003 to 107,355 in 2009; simultaneously, the proportion rose from 5.13% to
12.36%; and the number of faculty also increased from 62,779 to 171,356. All three
indexes have been falling since 2009 (Fig. 2.29).
The faculty and full-time teachers in private primary schools showed wavelike
changes. From 2003 to 2015, the number of full-time teachers in private primary
schools, the proportion of full-time teachers accounting for all full-time primary
school teachers nationwide, and the number of faculty have shown a trend of
increasing first and then decreasing, and later increasing gradually. The period from
2003 to 2010 was on a smooth growth stage, among which the number of full-time
teachers reached 229,480, the proportion it took was up to 4.09%, and the number
of faculty peaked to 313,927. The years from 2010 to 2015 saw a sharp decline and
began to rise gradually, among which 2014–2015 saw a rapid rise. In 2015, the
full-time teachers in private primary schools mounted to 352,122, which accounted
for 6.19% of total primary school teachers nationwide (Fig. 2.30).
Fig. 2.28 Faculty and Full-Time Teachers in Private Senior High Schools Nationwide (2003–
Fig. 2.29 Faculty and Full-Time Teachers in Private Secondary Vocational Schools Nationwide
Fig. 2.30 Faculty and Full-Time Teachers in Private Primary Schools Nationwide (2003–2015).
Source Educational Statistics Yearbook of China (2003–2015), and Data Compiled from Ministry
of Education of PRC
The faculty and full-time teachers in private kindergartens increased each year.
From 2003 to 2015, the number of full-time teachers in private kindergartens and
the number of faculty increased significantly, among which full-time teachers grew
from 228,971 to 1,271,211, and faculty from 383,942 to 2,308,510.
Simultaneously, the proportion of full-time teachers in private kindergartens
accounting for all full-time kindergarten teachers nationwide showed a steady
increase, increasing from 37.33% to 62.01%, followed by a slight fluctuation
(Fig. 2.31).
2.10.2 Private School Teachers in Different Education

Periods by Province/Autonomous Region/
Municipality
2.10.2.1 Teachers in Private Colleges/Universities by Province/

In 2014, Inner Mongolia, Jiangsu, Guangdong, Hainan, and Zhejiang were the top
five provinces according to student–teacher ratio in private colleges/universities.
Figure 2.32 shows the number of faculty, full-time teachers, and student–teacher
ratio in each province/autonomous region/municipality.
Fig. 2.31 Faculty and Full-Time Teachers in Private Kindergartens Nationwide (2003–2015).
Source Educational Statistics Yearbook of China (2003–2015), and Data Compiled from Ministry
of Education of PRC
Fig. 2.32 Number of Faculty and Full-Time Teachers and Student–Teacher Ratio in Private
Colleges/Universities by Province/Autonomous Region/Municipality. Source Data compiled from
2.10.2.2 Teachers in Private Senior High Schools by Province/

In 2014, Gansu, Liaoning, Ningxia, Qinghai, and Henan were the top five provinces
according to student–teacher ratio in private senior high schools. Figure 2.33 shows
the number of faculty, full-time teachers, and student–teacher ratio in each
2.10.2.3 Teachers in Private Junior High Schools by Province/

In 2014, Ningxia, Qinghai, Tianjin, Chongqing, and Liaoning were the top five
provinces according to student–teacher ratio in private junior high schools.
Figure 2.34 presents the number of faculty, full-time teachers, and student–teacher
ratio in each province/autonomous region/municipality.
2.10.2.4 Teachers in Private Primary Schools by Province/

In 2014, Jiangxi, Guangdong, Gansu, Xinjiang, and Tianjin were the top five
provinces according to student–teacher ratio in private primary schools. Figure 2.35
presents the number of faculty, full-time teachers, and student–teacher ratio in each
Senior High Schools by Province/Autonomous Region/Municipality. Source Data compiled from
Junior High Schools by Province/Autonomous Region/Municipality. Source Data compiled from
2.10.2.5 Teachers in Private Kindergartens by Province/Autonomous

Region/Municipality
In 2014, Xizang, Anhui, Qinghai, Gansu, and Henan were the top five provinces
according to student–teacher ratio in private kindergartens. Figure 2.36 presents the
number of faculty, full-time teachers, and student–teacher ratio in each province/
2.11 Changes in the Amount of Educational Finance … 55
Primary Schools by Province/Autonomous Region/Municipality. Source Data compiled from
Kindergartens by Province/Autonomous Region/Municipality. Source Data compiled from
2.11 Changes in the Amount of Educational Finance

in Private Schools Nationwide (2007–2013)
From 2007 to 2013, China’s private educational finance mainly consisted of two
parts: income and expenditure. The educational income includes six statistical
indicators, which are public budget on educational finance, taxes levied for edu-
cation by governments at all levels, investments of school organizers, tuition and
fees, donation incomes, and profits from school-run industries spent on education,
etc. The educational expenditure mainly included two statistical indicators, they are
public expenditure and capital construction expenditure.

Colleges/Universities Increased Year by Year
From 2007 to 2013, the total educational income and expenditure in private
colleges/universities (colleges, universities and private higher vocational schools)
increased year by year, among which the total income increased from 341.09 billion
yuan to 779.38 billion yuan and the total expenditure from 319.79 billion yuan to
760.42 billion yuan. The proportation of the overall income of the private higher
education’s educational fund in national higher education’s educational overall fund
was up to 11.00% in 2009, compared with 9.77% in 2013 (Fig. 2.37).
According to the annual variation on statistical indicators of total income from
private higher education over the years, the educational income mainly relies on
tuition and fees, public budget on educational finance, and investments of school
organizers, among which tuition and fees are the main source of income.
Specifically speaking,
First, public budget on educational finance was increasing year by year, from 8.24
billion RMB in 2007 to 67.34 billion RMB in 2013.
Second, taxes levied for education by governments showed a trend of increase,
followed by a decrease, from 0.38 billion RMB in 2007 to 10.37 billion RMB in
2013, and then reduced to 4.88 billion RMB in 2013.
Fig. 2.37 Educational Income and Expenditure in Private Colleges/Universities (billion) (2007–
2013). Source Data Compiled from China Educational Finance Statistical Yearbook (2008–2014)
Third, tuition and fees were rising year by year, from 272.05 billion RMB in 2007
to 614.11 billion RMB in 2013.
Fourth, investments of school organizers were fluctuating, increasing from 31.88
billion RMB in 2007 to 34.03 billion RMB in 2013.
Fifth, from 2007 to 2012, the donation income took a slight change, increasing from
1.24 billion RMB to 1.26 billion RMB, and soared to 3.42 billion RMB in 2013.
Sixth, the total educational expenditure of private colleges/universities showed a
trend of increasing year by year, from 319.79 billion RMB in 2007 to 760.42 billion
RMB in 2013. According to the annual variation on statistical indicators of
expenditure on private higher education, public expenditure is the most educational
expenditure.
Seventh, public expenditure increased year by year, from 289.64 billion RMB in
2007 to 754.44 billion RMB in 2013.
Eighth, capital construction expenditure had a fluctuation from 2007 to 2013,
among which there was a trend of sharply decline from 2010 to 2013, when it
reduced to 5.97 billion RMB.

Secondary Vocational Schools Showed an Increase
First, Followed by a Decrease
From 2007 to 2013, the total educational income and expenditure in private sec-
ondary vocational schools showed a trend of increasing first, followed by a trend of
decreasing. During the period, the total income increased from 62.93 billion RMB
in 2007 to 101.24 billion RMB in 2011, with a decline to 94.48 billion RMB in
2013; the total expenditure increased from 66.67 billion RMB in 2007 to 103.25
billion RMB in 2011, with a decline to 94.96 billion RMB in 2013. The proportion
of the total income from private secondary vocational schools accounting for that
from secondary vocational education nationwide grew from 7.39% in 2007 to
8.40% in 2009, followed by a gradual decrease, with a reduction to 4.73% in 2013
(Fig. 2.38).
private secondary vocational education over the years, the educational income
mainly relies on tuition and fees, public budget on educational finance, and
investments of school organizers, among which tuition and fees are the main source
of income. Specifically speaking, first, public budget on educational finance was
increasing year by year, from 6.62 billion RMB in 2007 to 31.74 billion RMB in
2013. Second, taxes levied for education by governments showed a trend of
increase, from 0.14 billion RMB in 2007 to 2.11 billion RMB in 2013. Third,
tuition and fees were fluctuating over the years, which were 39.94 billion RMB in
2007 and 38.84 billion RMB in 2013. Fourth, investments of school organizers
varied significantly, increasing from 7.36 billion RMB in 2007 to 12.90 billion
Fig. 2.38 Educational Income and Expenditure in Private Secondary Vocational Schools (billion)
(2007–2013). Source Data Compiled from China Educational Finance Statistical Yearbook (2008–
2014)
RMB in 2010, followed by a decrease to 8.88 billion RMB in 2013. Fifth, the
donation income took a slight change, which were 0.29 billion RMB in 2007 and
0.22 billion RMB in 2013. Sixth, profits from school-run industries spent on
education showed a relatively stable trend, with a decrease from 0.59 billion RMB
in 2007 to 0.32 billion RMB in 2013.
The total educational expenditure of private secondary vocational schools went
up first, followed by going down during the years from 2007 to 2013. There is an
increase from 66.67 billion RMB in 2007 to 103.25 billion RMB in 2011 and a
decline to 94.96 billion RMB in 2013. According to the annual variation on sta-
tistical indicators of expenditure on private secondary vocational education, public
expenditure costs the most educational expenditure. First, public expenditure
showed an upward trend first, followed by a downward trend. There is an increase
from 64.07 billion RMB in 2007 to 100.28 billion RMB in 2010 and a decline to
94.29 billion RMB in 2013, among which the personal expenditure rose from 26.81
billion RMB in 2007 to 50.43 billion RMB in 2013. Second, capital construction
expenditure went down slowly year by year, decreasing from 2.59 billion RMB in
2007 to 0.66 billion RMB in 2013.

Senior High Schools Grew Steadily Over the Years
The total income of private senior high schools increased from 108.73 billion RMB
in 2007 to 246.79 billion RMB in 2013. The proportation of the overall income of
the private senior high school’s educational fund in national senior high school’s
educational overall fund showed an upward trend first, and a downward trend later.
The number grew from 7.80% in 2007 to 8.64% in 2008, and then descended
dramatically, with a reduction to 2.94% in 2013 (Fig. 2.39).
private senior high schools over the years, the educational income mainly relies on
tuition and fees, public budget on educational finance, and investments of school
organizers, among which tuition and fees are the main source of income.
Specifically speaking, first of all, public budget on educational finance kept
growing steadily over the years, increasing from 2.89 billion RMB in 2007 to 14.12
billion RMB in 2013. Second, taxes levied for education by governments had a
slight change, from 0.33 billion RMB in 2007 to 3.34 billion RMB in 2013. Third,
tuition and fees continued to grow from 68.57 billion RMB in 2007 and 171.79
billion RMB in 2013. Fourth, investment of school organizers varied significantly,
decreasing from 15.63 billion RMB in 2007 to 12.02 billion RMB in 2013. Fifth,
the donation income varied significantly, which were 2.36 billion RMB in 2007 and
1.98 billion RMB in 2013.
The total educational expenditure of private senior high schools was trending up
during the years from 2007 to 2013, with an increase from 108.09 billion RMB to
183.45 billion RMB. According to the annual variation on statistical indicators of
expenditure on private senior high education, public expenditure costs most of the
educational expenditure. First, public expenditure showed an upward trend,
increasing from 102.85 billion RMB in 2007 to 183.45 billion RMB in 2013,
among which the personal expenditure rose from 47.51 billion RMB in 2007 to
95.50 billion RMB in 2013, and the public expenditure from 55.34 billion RMB in
2007 to 87.89 billion RMB in 2013. Second, capital construction expenditure
trended down, decreasing from 5.23 billion RMB in 2007 to 0.059 billion RMB in
2013.
Fig. 2.39 Educational Income and Expenditure in Private Senior High Schools (billion) (2007–

Junior High Schools Continued to Grow
Over the Years
ondary vocational schools continued to grow, among which the total income
increased from 139.05 billion RMB to 251.38 billion RMB, and the total expen-
diture from 137.13 billion RMB to 293.03 billion RMB. The proportion of the total
income from private junior high schools accounting for that from junior high
education nationwide was trending down year by year, with a decrease from 6.77%
in 2007 to 4.87% in 2013 (Fig. 2.40).
private junior high schools, the educational income mainly relies on tuition and
fees, public budget on educational finance, and investments of school organizers,
among which tuition and fees are the main source of income. First, public budget on
educational finance kept growing steadily over the years, increasing from 6.51
billion RMB in 2007 to 32.84 billion RMB in 2013. Second, taxes levied for
education by governments had a gradual growth, from 0.49 billion RMB in 2007 to
3.21 billion RMB in 2013. Third, tuition and fees continued to grow from 88.12
billion RMB in 2007 and 144.56 billion RMB in 2013. Fourth, investments of
school organizers were trending up, increasing from 12.50 billion RMB in 2007 to
23.70 billion RMB in 2013. Fifth, the donation income showed a trend of growing
first, followed by a declining later, which were 2.21 billion RMB in 2007 and 3.50
billion RMB in 2013. Sixth, profits from school-run industries spent on education
showed a relatively stable trend, which were 0.58 billion RMB in 2007 and 0.35
billion RMB in 2013.
Fig. 2.40 Educational Income and Expenditure in Private Junior High Schools (billion) (2007–
According to the annual variation on statistical indicators of expenditure on

private junior high education, public expenditure costs most of the educational
expenditure. First, public expenditure kept growing year by year, increasing from
134.06 billion RMB in 2007 to 292.79 billion RMB in 2013. However, the personal
expenditure rose from 63.26 billion RMB in 2007 to 99.78 billion RMB in 2013,
with an average of 80.76 billion RMB; and the public expenditure grew from 70.80
billion RMB in 2007 to 155.03 billion RMB in 2013. Second, capital construction
expenditure declined tremendously, dropping from 3.07 billion RMB in 2007 to
0.24 billion RMB in 2013.
2.11.5 The Educational Income and Expenditure

in Private Primary Schools Were Growing
Steadily Year by Year
ondary vocational schools continued to go up, among which the total income
increased from 97.67 billion RMB to 280.94 billion RMB, and the total expenditure
from 94.90 billion RMB to 292.85 billion RMB. The proportation of the overall
income of the private primary school’s educational fund in national primary
school’s educational overall fund was fluctuating slightly, which is 3.31% in 2007,
and 3.53% in 2013 (Fig. 2.41).
private primary schools, the educational income mainly relies on tuition and fees,
public budget on educational finance, and investments of school organizers, among
which tuition and fees are the main source of income. Specifically, First, public
Fig. 2.41 Educational Income and Expenditure in Private Primary Schools (billion) (2007–2013).
Source Data Compiled from China Educational Finance Statistical Yearbook (2008–2014)
budget on educational finance kept growing year by year, increasing from 3.84
billion RMB in 2007 to 38.34 billion RMB in 2013. Second, taxes levied for
education by governments had a gradual growth, from 0.37 billion RMB in 2007 to
8.82 billion RMB in 2013. Third, tuition and fees continued to grow from 62.65
billion RMB in 2007 and 156.77 billion RMB in 2013. Fourth, investments of
school organizers took significant changes, increasing from 13.49 billion RMB in
2007 to 28.74 billion RMB in 2013. Fifth, the donation income had slight changes,
growing from 0.72 billion RMB in 2007 to 1.72 billion RMB in 2013, with an
average of 0.50 billion RMB.
The number grew first and declined later, which were 2.21 billion RMB in 2007
and 3.50 billion RMB in 2013. Sixth, profits from school-run industries spent on
education were trending up, growing from 0.26 billion RMB in 2007 and 0.89
billion RMB in 2013.
The total educational expenditure of private primary schools showed an upward
trend from 2007 to 2013, with an increase from 97.67 billion RMB to 292.85
billion RMB. According to the statistical indicators of private primary educa-
tion’s total expenditure, public expenditure cost most of the educational expendi-
ture. First, public expenditure increased steadily, from 93.96 billion RMB in 2007
to 292.44 billion RMB in 2013, among which the personal expenditure rose from
43.14 billion RMB in 2007 to 153.49 billion RMB in 2013, and the public
expenditure from 50.83 billion RMB in 2007 to 138.95 billion RMB in 2013.
Second, capital construction expenditure showed a downward trend, decreasing
from 0.97 billion RMB in 2007 to 0.41 billion RMB in 2013.
2.11.6 The Investment of Private School Organizers

and the Proportion It Takes in the Total
Educational Finance Were Fluctuating
From 2007 to 2013, the total investment of private school organizers showed a
stable fluctuation, among which it went down slowly from 2007 to 2008, when it
started to grow gradually year by year, reaching 147.41 billion RMB in 2013.
Between 2007 and 2011, the proportion of investments of private school organizers
accounting for the total educational income nationwide is not high, which are
0.68%, 0.49%, 0.46%, 0.55%, 0.54% successively, and 0.49% in 2013 (Fig. 2.42).
Specifically, the investment of private school organizers varied significantly in
each province/autonomous region/municipality (2007–2013). In sequence,
Guangdong, Henan, Sichuan, Fujian, Anhui, Hunan, Hubei, Jiangxi, Shandong, and
Shaanxi are the top ten provinces with the largest amount of investment (Fig. 2.43).
2.12 Assets of Private Schools 63
Fig. 2.42 Investments of Private School Organizers and Proportion It Takes in Total Educational
Income Nationwide (billion) (2007–2013). Source Data Compiled from China Educational
Finance Statistical Yearbook (2008–2014)
Fig. 2.43 Investments of Private School Organizers in each Province/Autonomous Region/

Municipality (billion) (2007–2013). Source Data Compiled from China Educational Finance
Statistical Yearbook (2008–2014)
2.12 Assets of Private Schools
The assets of private schools mainly included school area, school building area, the
total value of fixed assets, assets value of teaching and research equipment, housing
area for teaching, research and auxiliary use.
2.12.1 Assets of Private Colleges/Universities by Province/

In 2014, the total school building area of private colleges/universities nationwide

was 159,107,400 m2, housing area for teaching, research and auxiliary use was
79,700,300 m2, covering 385,408,900 m2. Besides, the fixed assets valued
30,442,000 RMB and the assets of teaching and research equipment valued
3,623,100 RMB.
In 2014, Xinjiang, Inner Mongolia, Hainan, Beijing, and Tianjin were the top
five provinces/autonomous regions/municipalities with the largest school area per
student. Besides, Ningxia, Heilongjiang, Henan, Anhui, and Hebei were the top five
provinces/autonomous regions/municipalities with the highest proportion of school
area with property rights in the total school area (Table 2.14).
Beijing, Inner Mongolia, Xinjiang, Fujian, and Yunnan were the top five
provinces/autonomous regions/municipalities with the largest school building area
per student. Besides, Ningxia, Henan, Hebei, Heilongjiang, and Qinghai were the
top five provinces/autonomous regions/municipalities with the highest proportion
of school building area with property rights in the total school building area.
Beijing, Shanghai, Hainan, Liaoning, and Fujian were the top five provinces/
autonomous regions/municipalities with the highest value of fixed assets per stu-
dent. Besides, Inner Mongolia, Ningxia, Heilongjiang, Gansu, and Henan were the
top five provinces/autonomous regions/municipalities with the highest proportion
of school assets with property rights in the total school assets.
Xinjiang, Beijing, Shanghai, Yunnan, and Fujian were the top five provinces/
autonomous regions/municipalities with the highest value of teaching and research
equipment per student. Besides, according to the proportion of equipment with
property rights accounting the total school equipment, the teaching and research
equipment were 100% belonged to the private colleges/universities in Inner
Mongolia, Jilin, Heilongjiang, Henan, and Hainan (Table 2.15).
2.12.2 Assets of Private Senior High Schools by Province/

In 2014, the total school building area of private senior high schools nationwide
was 71,131,953 m2, housing area for teaching, research, and auxiliary use was
24,563,237 m2, covering 140,966,858 m2, the fixed assets valued 107,953,180,900
RMB, and the assets of teaching and research equipment valued 9,137,345,200
RMB. Besides, Beijing, Shanghai, Guangdong, Fujian, and Inner Mongolia ranked
top five with the largest school area per student (Table 2.16).
Table 2.14 Assets of Private Colleges/Universities in Each Province/Autonomous Region/

Municipality (2014)
Province School School Housing area for Assets value of Fixed
area per building teaching, research teaching and assets
student area per and auxiliary use research equipment value per
(m2) student per student (m2) per student (10 student (10
(m2) thousand) thousand)
Beijing 94.88 42.65 19.03 0.99 8.78
Tianjin 85.20 25.86 13.10 0.62 6.43
Hebei 56.84 25.22 14.02 0.58 4.17
Shanxi 49.50 25.00 12.59 0.66 3.74
Inner 132.64 39.98 20.31 0.75 6.68
Mongolia
Liaoning 69.27 28.28 15.50 0.58 7.53
Jilin 70.19 23.14 11.36 0.49 6.04
Heilongjiang 77.32 30.79 16.55 0.58 5.76
Shanghai 49.65 30.41 12.28 0.91 7.67
Jiangsu 63.92 27.09 13.42 0.64 4.85
Zhejiang 55.97 28.79 13.67 0.76 6.55
Anhui 61.45 26.93 13.70 0.52 4.01
Fujian 77.15 33.42 16.43 0.76 7.32
Jiangxi 83.37 33.09 16.97 0.73 5.63
Shandong 76.98 30.39 15.84 0.73 5.73
Henan 72.93 29.30 15.53 0.59 4.49
Hubei 63.72 29.01 15.65 0.66 5.37
Hunan 72.68 27.53 13.52 0.63 5.07
Guangdong 62.41 22.76 9.96 0.45 4.77
Guangxi 61.45 24.92 11.54 0.58 3.72
Hainan 95.26 26.92 11.57 0.72 7.61
Chongqing 70.35 28.59 14.49 0.59 4.36
Sichuan 66.52 26.67 14.48 0.66 6.27
Guizhou 52.83 22.84 12.60 0.53 3.13
Yunnan 62.82 32.98 12.90 0.85 5.65
Shanxi 53.33 24.16 11.72 0.51 4.25
Gansu 29.01 20.49 11.40 0.48 3.29
Qinghai 45.15 26.03 17.36 0.52 1.44
Ningxia 75.14 25.35 12.55 0.55 3.33
Xinjiang 206.36 35.88 20.94 1.18 3.72
Table 2.15 Proportion of Assets with Property rights Accounting for the Total Private Colleges/
Universities Assets in Each Province/Autonomous Region/Municipality (%) (2014)
Province % of % of % of housing area % of assets value % of fixed
school school (for teaching, of teaching and assets
area with building research and research value
property area with auxiliary use) with equipment with with
rights property property rights property rights property
rights rights
Beijing 48.92 65.68 65.59 99.40 90.93
Tianjin 73.32 64.99 63.22 89.50 83.05
Hebei 81.99 88.11 91.82 97.52 90.24
Shanxi 51.01 42.34 44.82 77.10 71.70
Inner 77.48 52.19 50.15 100.00 100.00
Mongolia
Liaoning 64.16 52.93 57.41 92.31 64.99
Jilin 56.42 58.20 60.87 100.00 93.17
Heilongjiang 90.01 82.62 84.51 100.00 98.86
Shanghai 65.91 46.61 64.20 98.51 75.07
Jiangsu 49.22 29.29 32.58 94.33 77.56
Zhejiang 73.89 54.05 55.64 98.93 85.32
Anhui 82.80 77.82 84.91 96.34 89.04
Fujian 40.67 37.84 40.41 82.86 87.11
Jiangxi 67.21 59.62 60.91 91.79 83.01
Shandong 68.67 59.31 57.91 96.29 82.38
Henan 87.02 89.63 91.92 100.00 94.99
Hubei 58.48 58.74 59.18 75.50 71.93
Hunan 65.41 55.13 55.51 84.95 75.42
Guangdong 42.78 29.88 34.22 98.47 59.12
Guangxi 55.04 38.26 37.37 85.71 86.41
Hainan 64.32 52.05 56.86 100.00 92.04
Chongqing 80.13 74.43 77.30 97.76 89.17
Sichuan 61.75 52.45 55.57 95.34 72.24
Guizhou 64.37 75.54 75.52 81.90 77.85
Yunnan 56.10 36.41 42.66 53.79 82.68
Shaanxi 33.83 45.07 43.19 98.05 94.29
Gansu 62.08 53.31 45.63 96.11 96.42
Qinghai 80.26 80.35 81.27 99.59 81.73
Ningxia 97.25 95.02 93.02 98.59 99.77
Xinjiang 72.07 72.17 70.77 59.52 68.32
Table 2.16 Assets of Private Senior High Schools in Each Province/Autonomous Region/
Municipality (2014)
Province School School Housing area for Fixed assets
area per building area teaching, research and value per
student per student auxiliary use per student student (10
(m2) (m2) (m2) thousand)
Beijing 170.87 94.47 31.98 14.23
Shanghai 122.40 86.68 35.43 11.24
Guangdong 99.61 56.27 20.05 11.07
Fujian 82.95 43.28 15.64 6.63
Inner 82.21 32.05 10.85 3.54
Mongolia
Yunnan 82.12 31.00 10.55 5.50
Hainan 81.82 38.54 11.65 6.20
Xinjiang 80.76 28.96 9.98 3.08
Hunan 69.92 36.15 14.78 4.76
Ningxia 66.30 20.47 8.17 3.07
Tianjin 66.30 40.12 13.57 4.95
Sichuan 65.32 40.36 12.88 7.28
Hubei 61.10 25.90 8.26 4.65
Hebei 59.34 23.36 8.12 2.50
Anhui 59.30 28.35 8.71 3.91
Shandong 58.74 24.76 7.97 3.19
Zhejiang 55.86 31.37 10.70 5.19
Jiangsu 55.26 29.68 12.08 5.38
Jiangxi 52.34 23.99 7.68 3.22
Shanxi 48.84 22.90 7.39 2.99
Henan 45.67 23.04 7.88 2.50
Liaoning 45.41 23.31 8.47 3.70
Guangxi 45.32 21.93 7.52 2.40
Chongqing 44.42 28.53 8.66 3.84
Guizhou 44.03 22.82 6.72 4.41
Shanxi 43.43 25.15 8.73 3.91
Jilin 41.40 23.08 9.32 3.10
Gansu 35.00 15.10 5.50 3.14
Heilongjiang 32.23 19.09 8.19 2.08
Qinghai 22.79 13.43 5.85 2.51
2.12.3 Assets of Private Junior High Schools by Province/

In 2014, the total school building area of private junior high schools nationwide was
57,998,742 m2, housing area for teaching, research and auxiliary use was
RMB. Besides, Hainan, Qinghai, Shandong, Guangdong, and Henan ranked top
five with the largest school area per student (Table 2.17).
2.12.4 Assets of Private Primary Schools by Province/

In 2014, the total school building area of private primary schools nationwide was
28,565,696 m2, housing area for teaching, research, and auxiliary use was
RMB. Besides, Qinghai, Chongqing, Ningxia, Hebei, and Shaanxi ranked top five
with the largest school area per student (Table 2.18).
2.12.5 Assets of Private Kindergartens by Province/

In 2014, the total school area of private kindergartens nationwide was 207,963,873
m2, among which the school building area covered 128,816,058 m2, and housing
area for teaching, research, and auxiliary use was 92,720,592 m2. Besides, Qinghai,
Beijing, Inner Mongolia, Shandong, and Ningxia ranked top five with the largest
school area per student (Table 2.19).
To sum up, private education in China has gone through two stages since 2003.
First, 2003 to 2006 was on a stage of rapid growth. When people need public
education urgently, and public education could not meet people’s need, private
education could be the supplement. The non-government investors took unprece-
dented initiatives to organize private education and set up private schools at all
levels, based on the favorable provisions of People’s Republic of China Private
Education Law that it is permitted to obtain a reasonable return by organizing
private education and a serious of preferential policies. Therefore, private schools
expanded rapidly in terms of scale, number of students and investments. Second,
2006–2014 was on a stage of steady development. On the one hand, the effect that
the favorable provisions of People’s Republic of China Private Education Law was
decreasing slowly, and the relevant preferential and supportive policies were not
effectively implemented. On the other hand, the public financial investment in
Table 2.17 Assets of Private Junior High Schools in Each Province/Autonomous Region/
Municipality (2014)
Province School School Housing area for Fixed assets Assets value of
area per building teaching, research value per teaching and
student area per and auxiliary use student research
(m2) student per student (m2) (10 thousand) equipment per
(m2) student
(10 thousand)
Hainan 36.84 18.87 6.72 2.46 0.26
Qinghai 33.34 10.48 2.76 1.52 0.00
Shandong 33.20 13.99 4.95 1.72 0.16
Guangdong 30.87 17.38 8.33 2.52 0.34
Henan 29.44 14.05 4.82 1.69 0.12
Jiangxi 27.77 12.12 4.43 1.49 0.13
Hebei 26.55 10.04 3.62 1.14 0.10
Zhejiang 26.27 15.13 5.94 1.99 0.22
Jiangsu 26.04 13.37 5.78 1.93 0.18
Inner 24.65 7.96 3.59 1.19 0.06
Mongolia
Hubei 24.58 11.68 4.39 1.72 0.17
Guangxi 21.87 9.60 3.83 0.85 0.08
Ningxia 20.80 5.18 3.26 0.58 0.05
Guizhou 20.49 9.83 3.98 1.66 0.14
Hunan 20.37 10.66 4.04 1.68 0.14
Shanxi 19.62 9.27 3.06 1.33 0.08
Heilongjiang 19.58 7.81 3.12 1.48 0.09
Shaanxi 19.29 8.06 2.80 1.22 0.13
Anhui 18.94 8.21 3.05 1.27 0.09
Sichuan 18.50 10.45 4.32 1.63 0.20
Shanghai 16.79 11.37 4.91 1.11 0.27
Beijing 15.94 6.02 2.72 0.79 0.07
Xizang 14.17 12.62 6.67 0.61 0.05
Xinjiang 13.99 6.21 3.06 0.40 0.11
Jilin 13.90 8.55 3.92 0.69 0.09
Chongqing 13.53 7.25 2.80 1.39 0.11
Gansu 13.41 7.97 2.73 1.05 0.15
Liaoning 13.21 6.97 2.87 0.87 0.09
Fujian 12.79 6.80 2.62 0.99 0.09
Yunnan 12.46 7.43 3.22 0.76 0.08
Tianjin 8.92 5.16 2.04 0.89 0.04
Table 2.18 Assets of Private Primary Schools in Each Province/Autonomous Region/

Municipality (2014)
Province School School Housing area Fixed assets Assets value of
area per building for teaching, value per teaching and
student area per research and student research
(m2) student auxiliary use (10 thousand) equipment per
(m2) per student student
(m2) (10 thousand)
Qinghai 47.13 8.39 3.12 0.89 0.03
Chongqing 17.49 10.08 4.70 2.08 0.13
Ningxia 16.23 5.75 2.82 1.74 0.16
Hebei 15.75 5.81 2.17 0.61 0.05
Shaanxi 15.07 7.00 2.74 0.88 0.13
Henan 13.76 5.77 2.39 0.66 0.04
Shanxi 13.71 6.03 1.99 0.66 0.04
Shandong 12.98 5.36 2.23 0.64 0.06
Liaoning 11.80 5.68 2.07 0.75 0.12
Inner 11.27 3.80 1.64 0.56 0.07
Mongolia
Jiangsu 8.91 3.55 1.86 0.50 0.07
Hunan 8.79 4.94 1.91 0.87 0.10
Heilongjiang 8.47 5.04 2.55 0.28 0.03
Beijing 8.42 4.06 2.79 0.32 0.07
Anhui 8.42 3.64 1.67 0.46 0.03
Xizang 8.11 4.87 2.18 2.48 0.09
Hubei 7.85 4.12 1.83 0.49 0.06
Shanghai 7.57 3.94 2.23 0.31 0.12
Yunnan 7.52 3.32 1.79 0.31 0.06
Gansu 7.50 3.27 1.16 0.14 0.03
Sichuan 7.50 4.03 1.84 0.61 0.07
Yunnan 6.77 3.04 1.33 0.38 0.04
Zhejiang 6.62 3.84 1.82 0.59 0.06
Jilin 6.35 3.14 1.50 0.62 0.07
Fujian 6.15 3.70 1.69 0.47 0.06
Tianjin 5.92 5.06 2.62 0.39 0.10
Xinjiang 5.90 2.64 1.18 0.10 0.03
Guangxi 5.83 3.58 1.82 0.34 0.03
Guizhou 5.37 3.16 1.57 0.38 0.05
Guangdong 4.99 2.96 1.53 0.43 0.06
Jiangxi 4.41 1.98 0.83 0.23 0.02
Table 2.19 Assets of Private Kindergartens in Each Province/Autonomous Region/Municipality

(Square Meters) (2014)
Province School area School building Housing area for teaching, research
per student area per student and auxiliary use per student
Qinghai 15.63 4.70 3.34
Beijing 14.82 9.95 6.50
Inner 14.02 6.89 4.91
Mongolia
Jiangsu 13.96 8.07 5.68
Shandong 12.76 6.60 4.79
Ningxia 12.37 6.77 4.94
Xinjiang 12.27 6.38 4.52
Shanghai 11.96 7.76 5.35
Hebei 11.69 5.68 4.20
Liaoning 11.30 6.36 4.65
Henan 10.65 5.15 3.81
Heilongjiang 10.53 5.59 4.12
Tianjin 10.46 6.63 4.82
Jilin 10.39 5.28 3.91
Shanxi 10.10 5.99 4.16
Hunan 10.03 6.49 4.73
Hubei 9.98 6.17 4.55
Guangdong 9.80 7.72 5.19
Shaanxi 9.79 5.28 3.78
Yunnan 9.72 6.04 4.23
Zhejiang 9.08 7.00 4.83
Gansu 8.97 4.70 3.39
Sichuan 8.59 5.36 3.99
Chongqing 8.59 5.73 4.33
Jiangxi 8.45 5.63 4.23
Hainan 8.10 5.59 4.06
Fujian 7.98 6.10 4.40
Anhui 7.79 4.29 3.19
Guizhou 6.73 4.72 3.43
Guangxi 6.33 5.21 3.95
Tibet 5.91 3.42 2.58
education was growing dramatically, especially tending to public schools, which in

turn made tremendous impact on private education. In addition, the school-age
students continued to decrease over the years. Eventually, these all put a drag on the
development of private schools in number of private schools and students, as well
as in amount of educational investments, etc. It was even worse to see a continuous
declining in some education period. Nevertheless, there is no doubt that the private
education has become an integral part to Chinese education, which is an important

growth point and the indispensable power to promote the education reform.
Meanwhile, the development of private education has been listed as an important
duty of governments at all levels.
2.13 The Periodical Characteristics of Private

Education Development
The development of Chinese private education has some significant characteristics

after reviewing Chinese private education history and analyzing the lively practice
of private education.
2.13.1 Desalination of Organizers’ Profit-Oriented,

Manifestation of Organizers’ Educational Sentiment
The innovation of Chinese private education system relates to investment and

financing system, and the market mechanism closely by overviewing Chinese
private education history since the reform and opening-up policy in 1978 exten-
sively. Running a school by investment is the basic characteristic of Chinese private
education (Wu 2006). Such a practice is the approach to deal with shortage of funds
in a specific period, and the passive choice in the background of insufficient of
government financial support from a developmental perspective. To make profit is
the primary purpose for the private schools’ organizers under the conditions of
capital shortage and the single channel of financing. Most of the private school
organizers appeal to have the property ownership strongly. Undeniable, the pursuit
of benefit guarantees private schools has a steady and continuous capital chain,
laying a solid material foundation of the scale expansion in the private education’s
early stage. Private education integrates to the capital market in the later stage by a
large amount of capital saved by investment and financing. Private education
promotes the establishment of piles of emerging schools and the birth of multiple
school-running models.
In recent years, with the accomplishment and stabilization of private schools’
early stage capital accumulation, some of the private schools’ orientation has
shifted quietly. It is worth mentioning that many nonprofit private schools’ orga-
nizers do not put profit in the first place, they pay much attention to the talent
cultivation quality, students’ learning satisfaction, and the protection of teachers’
rights and interests, etc. Many current private education organizers transcend the
previous profit orientation thought gradually, they abandon the single investment
idea and development approach consciously, and tend to devote full time and invest
fearlessly to private education. The organizers emphasize on improving education
quality, undertaking social responsibility and guaranteeing teachers and students
2.13 The Periodical Characteristics of Private Education Development 73
legal interest by adhering to the educational feelings with the school for life or for
death. It brings more power to Chinese private education, and promotes private
education development sustainably.
2.13.2 School-Running Should Adhere to the Interior Law
Historically, most of the first generation of private school organizers are entre-
preneurs who possess certain amount of social capital or the social elites who own
educational feelings. Under the influence of entrepreneurial economy logic, it is
hard for those organizers to differentiate school organization and business organi-
zation. They manage the private schools by business idea. Thus, a great amount of
large-scale and high management efficient private school was born. Economic logic
and enterprise management have become the most distinguishing features of private
education in the early development stage. Although organizers run schools with full
enthusiasm, they are always unable to do what they hope to do and cannot abide to
educational basic law strictly.
Traditional school-running logic meets the need of laying foundation and
striving for survival at the early stage, and promotes the development of private
education enterprise. However, private education has stepped into a smooth
development stage (since 2006) from the rapid development stage (2003–2006).
With incensement of governmental investment and the fierce competition from
public schools, private education’s deep ambivalence is more and more intensified,
the latent problems of private education are emerging, for example, the external
economic logic and enterprise management reached the ceiling. Private education
has no choice but for the scientific development. In order to explore the lasting
development approach, many organizers change the external logic dominated
school-running idea, and they emphasize on the education law to run schools base
on the strategic needs and private education’s unique development mechanism of
Chinese education development. By doing this, school-running can abide by the
law and school’s interior development rule.
2.13.3 Development Mode Transition: From the Hard

Power- “Strive for Survival” to the Soft Power-“Live
with High-Quality and Live Long”
Chinese private education has been in the position of in short supply, which makes
most private schools to build their capacity by expanding enrollment, optimizing
facilities, increasing programs, etc. School’s location, size, and facilities are the key
indexes of private school’s schooling capability. Private schools attract a lot of
parents who have a fat salary and have no time spending on children’s education.
Many parents evaluate private schools’ schooling quality by some soft power
indexes. However, the contradiction between parents’ high-expectation and private
schools’ low overall quality becomes apparent after the accomplishment of
large-scale construction. The gap between software and hardware damages private
schools social image.
With the sharp increment of public school’s investment, the decrement of the
source of student caused by one-child policy, and the emerging of multiple
school-running models like Sino-foreign cooperation in education, private educa-
tion’s space of development and benefit structure have changed dramatically. Even
private schools facing great social pressure, the multiple interest appeal or the
sustainable development of private education, those factors push for the private
education reform. A number of private schools are changing the crisis conscious-
ness into down-to-the-earth actions. Private education pays more attention to meet
the need of teachers and students’ development, optimize internal governance
effectiveness, and improve teaching quality. Private education transits from
extensive quantitative oriented model to qualitative oriented intensive model by
employing experts, reinforcing research investment, making magnet school. Instead
of the homogeneous “large and all-inclusive” schooling model, the specialized
“proper and high-quality” model is welcomed. Private education pursues
high-quality rather than survival.
2.13.4 Continued Perfection of Registration of Juristic

Persons, Property Rights System, and Deep-Seated
Problems Need to Be Solved
In the 1980s, Chinese government encouraged non-government sectors to run

schools. Private education was at the crossroads of golden opportunities. Private
education made up for the deficiency of public education. However, the arbitrari-
ness and disorders were private education’s outstanding problems at that time.
Chinese Ministry of Civil Affairs enacted the Registration Regulation of Private
Non-Enterprise Units in 1998 to standardize the development of private schools,
hospitals, and other private institutions, many private schools registered as “private
non-enterprise” institutions. However, the specific legal persons according to the
Chinese General Principles of Civil Law are enterprise, offices, public institutions,
and social organizations. It is hard to classify private non-enterprise institutions as
legal person. Therefore, private education cannot join the superior institutions, and
cannot enjoy the corresponding policies such as financial support, tax preference,
preferential land policy and social welfare. China issued the Private Education
Promotion Law which had no specific stipulation of private education’s property.
There is only one sentence, which said the disposition of school’s residual estate
should “in accordance with relevant laws and regulations”. The vagueness of pri-
vate education’s related laws and regulations makes the organizers have many
problems about the ultimate reversion of private school’s property. Therefore, the
“control of organization” for the sake of enforcing private school’s right came into
being vigorously (Zhou and Shi 2005).
From the lens of private education, a number of underlying problems continue to
spring up. The following three questions are the issues of intensive debate and
private school’s major concern and core requirement. First of all, should “educa-
tional” or “noneducational” be classified separately inside of for-profit or non-profit
legal entity? Second, what is the main basis of refining various kinds of legal
person? Third, how to follow up the registration system?
2.13.5 Government Reinforce Prop Dynamics

and the Financial Resources Remain
to Be Expand
Some scholars have argued that the publicity of public finance which determines the
government whose main responsibility is to satisfy the society’s public demand
should provide financial support of private schools (Gong 2012). It is government’s
fundamental duty to provide private education a reasonable support from the per-
spectives of academic analysis and the practical need. However, both the central
and local governments did something to support private education. Chinese gov-
ernment issued some supportive private education policies one after another. For
example, the referential tax policies polite project achieved remarkable effective-
ness, government expanded private school’s subsidy, government innovated pur-
chase service mode, and launched students’ loan policies comprehensively.
Subsequently, Chinese government implemented a series of public financial sup-
port policies. It manifested that government took responsibility to private educa-
tion, and it also indicated that government gave consideration to private education’s
unique role from the perspective of national education development.
In fact, government’s support to private education remains poor, non-profit
private schools cannot enjoy the benefit which equals to public schools. For
instance, private school’s capital shortage can not be fundamentally alleviated.
Besides, the orientations of private education support policies are different from
each other in different areas because of the regional differences of social, economic,
and educational developmental level. It is obvious that the private schools’ financial
support in eastern developed regions is much more than the financial support in the
areas of western and central China. Undoubtedly, tuition-dependent and lacking of
funding are the main characteristics of Chinese private schools’ expenditure
structure. Above all, affected by the decrement of the overall scale of private
school’s enrollment in recent years, the growth of private schools’ overall revenue
slowed down. In consequence, expanding private school’s funding sources repre-
sents the general trend in the context of the shortage of school funding.
2.13.6 Teacher and Student’s Legal Interest

Was Protected to Some Extent, Interest
Protection Mechanism Should Be Perfected
With the steady development of private education, the introduction and polite
implementation of private education classified management policies, teacher and
student’s legal interest in private schools attracts increasingly attention, teacher and
student’s status, welfare, basic right, and growth potential are protected to a certain
extent. In the existing period, public financial support policies target at student
including student subsidy, scholarship, grant, and loan, and those student’s financial
supports develop in a good situation. Local government issues private education
subsidy regulations to guarantee student’s funding. Local government encourag-
ing and supportive measures focus on non-profit private schools, such as making
private school teacher’s pay rate, exploring stable talent introduction mechanism,
establishing more complete staff social insurance payment scheme, etc.
In the process of implementation, student funding policies show deficiency in
the aspect of abiding by the public welfare, equity, and operation law of public
finance. Students in non-profit private schools cannot enjoy the same national
funding treatment with public school’s students. Private school students will suffer
the direct discrimination and the non-direct discrimination when they want to get a
job or start a business. The rather low social recognition has negative impact on the
enrollment of private school, and thus, an irreversible vicious cycle is formed. From
the perspectives of existing policies and the practice, the insufficient protection of
private school’s teacher and student’s rights and interests, insufficient implemen-
tation and the inappropriate speed-up of the relevant policies, and incomplete of
supporting system are all the radical problems. It is still hard to satisfy private
school teachers and students’ demand for subsistence and development.
2.13.7 Reinforcement of Internal Normative Consciousness

and the Speed of Legal Governance Construction
Is Expected to Accelerate
From the field research in recent years, private school’s legal governance structural
construction has gained consistent attraction of different stakeholders. In the aspect
of external governance, the process of managing the school process according to
law goes forward faster and faster, and government plays the role of external
supervisor. Government makes the private school to abide by the educational
management basic laws, and abide by the market economy’s laws and regulations
in order to guarantee private education’s development dynamics and reform
impetus. In the aspect of internal governance, the determination to seek governance
mode reform of private schools, especially private higher education institutions,
becomes more and more obvious. Some organizers turn to adopt new gover-
nance idea to manage private school. Some organizers have recognized the
importance of complying with educational law, governance regulations, and the
respecting to collective will. They put the democratic decision-making, scientific
management on the reform agenda. It is conspicuous that the decision mechanism is
perfecting, more clarification of rights and responsibilities, and more security of
teacher and students’ participation right, etc.
Nevertheless, many investments, especially sole proprietorship private schools,
provide fertile grounds of “parental” and “familial” management modes. In addi-
tion, the omission of school’s owner is caused by the ambiguous of legal person’s
property, and the losing of function is caused by the deficiency of the internal and
external supervision mechanisms which leads private school executive board
controlled by interest group. The disadvantage of familial management remains a
big problem. The private school’s investors control private schools, there is
a centralization of principal’s power, and the power of executive board is overly
inflated. In turn, all those sorts of things are consuming the sustainable develop-
ment of Chinese private education.
2.13.8 The Expansion of the Autonomy in Running

Schools, Empowerment, Management, and Service
Need Synchronous Update
Government streamline administration and institute decentralization have made

some initial achievements at present, inspiring the schooling enthusiasm and vitality
powerfully. Regional governments explore the approaches of implementing and
enlarging private school’s schooling autonomy. The explorations are as follows:
liberating price regulation gradually; increasing school’s rights of pricing; allowing
qualified private schools to charge the tuition and fluctuate in a certain percentage
according to the government guidance price; expanding private higher education
institution’s enrollment planning and autonomy; expanding private higher education
institutions’ power of setting specialties appropriately; encouraging private schools
carry out educational and teaching activities independently (Shi and Zhou 2014).
It is undeniable that the autonomy of Chinese private schools is expanding in
practice. Nevertheless, from the lenses of the practical development need and the
widespread calls from the stakeholders, some departments carry on the management
as before. The finiteness and randomness of private school’s schooling autonomy
still are the obvious characteristics. Private school’s series of reforms cannot break
through the shackles of governmental centralization and the finiteness of school’s
authority. There is still a long way to put school’s autonomy into practice. In terms
of the internal of private education system, some private schools are not yet capable
of controlling by themselves, and lack the democratic and scientific power checks
and balance mechanisms, thus, the schooling anomie and missequence appeared,
affecting private school’s social credibility, and restricting the expanding of

schooling autonomy.
All in all, there are various kinds of factors influencing the development of
Chinese private education. Building for-profit and non-profit classified management
policies system, making plans for the top-level design of classified management,
and promoting classified reform orderly are the radical measures of breaking
through the institutional bottleneck, restricting the development of private educa-
tion; they are the basic undertakings of the implementation and perfection of private
education system and preferential policies.
References
Wu Daguang (2006) Investment in Schooling: the Fundamental Characteristics of Chinese Private

Educaton. In: The Journal of Zhejiang Shuren Univeristy, p 1–4
Gong Lixia (2012) The Study of Public Finance Supports Private Higher Education Policy. In
Education Development Research, p. 33–37
Shi Wenmei, Zhou Haitao (2014) The Regional Practices and Innovative Development of
Implementation of Private Higher Education’s Schooling Autonomous Right. In: Education
Development Research, p 84–91
Chapter 3
The Legal Person’s Classification
Registration and the Ownership
of Property in Chinese Private
Education
Chinese Outline of the National Medium- and Long-Term Plan for Education
Reform and Development (2010–2020) states “private education is an important
point for the development of education, and an important force to promote edu-
cation reform…. We should create a number of top-notch private education insti-
tutions” (The State Council 2010). Private education is ushering in a rare
opportunity for development. However, private education still faces some obstacles
due to the delays and mismatching of relevant policies and regulations. One of the
most serious obstacles is the nature of private school as a legal person and identity
of private education organizer has not yet been clearly defined.
3.1 Classification Is Legal Person’s Property

Within Chinese Legal Framework
Legal person, which refers to the organization which has obtained the legal per-
sonality based on private law, falls into another type of civil subject relative to
natural person. The emergence of the concept of “legal person” conveys legislator’s
value. Legal person is the production of the development of social and economy, it
is also the reflection of the law on the social, political, and economic structure.
Given the complexity of social organizations, it is necessary to distinguish orga-
nizations with different properties and characteristics legally. The classification of
legal persons is the result of systematic abstraction of organizational structures, it
acts as the behaviorial rules regarding different forms of legal persons (Ma 2004).
The General Principles of Civil Law specified Chinese legal person system by
law for the first time in 1986. Article 36 of the General Principles of Civil Law
stipulated that “[a] legal person shall be an organization who has capacity of civil
rights and conduction, and enjoys civil rights and fulfils civil obligations in
accordance with the law independently.” Chinese legal system inherits the tradition
of the statute law of countries using a civil law system to a certain extent.
80 3 The Legal Person’s Classification Registration …
However, it does not adopt the method of classification of public legal person and
private legal person, or the concepts of incorporated foundation and incorporated
association in the civil law system (Dong 2010a). Although the Regulations for the
Management of Foundations uses the concept of “non-profit legal person”, there is
still no classification of for-profit legal person and non-profit legal person in
Chinese law.
In Chinese General Principles of Civil Law, according to the purpose of
establishment of legal persons, and the nature of the legal persons’ activities, legal
persons were classified into four categories, namely enterprise as legal person,
official organ as legal person, provider as legal person, and social organization as
legal person. The last three are called non-enterprise legal persons.
3.1.1 Enterprise as Legal Person
Enterprise as legal person refers to an independent economic organization engaging

in commodity production and operation activities to make profit. Thus, it can be seen
that enterprise as legal person is equivalent to the traditional for-profit legal person.
According to the provisions of Article 41 of the General Principles of Civil Law and
other relevant laws, enterprises as legal persons in China were classified into
enterprise owned by the whole citizenry as legal person, enterprise under collective
ownership as legal person, private enterprise as legal person and foreign-capital
enterprise as legal person. Such classification was mainly based on the ownership
system and the nationality of the capital contributor. With the gradual establishment
of the modern enterprise system, enterprises as legal persons also were classified into
the two categories of corporate legal person and non-corporate legal person.
3.1.2 Official Organ, Provider, and Social

Organization as Legal Persons
Official organ, provider, and social organization as legal person mean the legal
persons mainly engage in noneconomic activities and not for the purpose of making
profits. These kinds of legal persons engage in state administration, and social,
political, economic, cultural, and other undertakings, as well as social activities.
They also engage in some necessary civil activities, so they are also the subjects of
civil activities.
3.1.2.1 Official Organ as Legal Person
Official organ as legal person refers to the state organ at the central and local levels
that has the administrative power granted by the state, using the state budget as
funds to conduct independent activities and have the legal person qualification.
3.1 Classification Is Legal Person’s … 81
Official organ as legal person in China is equivalent to the public legal person in the
Western countries. Official organizations enjoy the corresponding capacity for civil
right and civil conduct because they need to exercise their functions and powers.
They also act as a civil subject. Official organs as legal persons have four basic
characteristics. First, they mainly engage in national administrative activities.
Second, they have the corresponding capacity for civil rights and civil conduct.
Third, they have independent funds. Fourth, they are established in accordance with
the laws or administrative regulations, and qualified as a legal person without being
approved and registered by the qualified authority.
3.1.2.2 Provider as Legal Person
Provider as legal person means the provider is qualified as civil subject, and mainly
refers to various types of legal persons engaged in non-profit social public welfare
services such as culture, education, health, sports, news, publishing, etc. Providers
are mainly referred to social organizations, which engaged in public welfare ser-
vices and received fiscal grants from the state in the past. Taken in these senses,
actor’s guilds, education providers, libraries, hospitals, newspaper offices, and radio
stations are the typical providers. These organizations do not engage in commercial
activities gradually, although they made some money, these gains were ancillary.
However, with the deepening of the economic system reform, some providers
cannot get the fiscal grants, and transform into organizations, which undertake
independent responsibilities for the profits and losses. Alternatively, different
bodies, such as research institutes, publishing houses, and for-profit hospitals
managed those organizations corporately. This made the boundary between pro-
viders and enterprises increasingly blurred.
3.1.2.3 Social Organization as Legal Person
Social organization as legal person refers to various types of legal persons, which
are formed by natural persons or legal persons voluntarily. Those natural persons or
legal persons engage in social welfare activities in the fields of literature and art,
academic research, and religion. Social organizations include a wide range of
organizations, such as civil organizations, social welfare organizations, academic
research organizations, literary and artistic organizations, and religious organiza-
tions. Article 2 of Chinese the Regulations for the Registration Administration of
Social Organizations stipulates that “the term ‘Social Organizations’ are the
non-profit social organizations formed voluntarily by Chinese citizens whose
activities in accordance with their association’s regulations, and are for the real-
ization of the common desires of the membership.” Article 3 of the Regulations
stipulates that “Social Organizations” are divided into two types, which are “exempt
from registration” and “need not be registered.” There are three types of social
organizations, which are exempt from registration. The first one is “people’s groups
which have participated in the Chinese People’s Political Consultative Conference.”

The second one is “organizations which were confirmed by the administrative
department for institutional organization under the State Council, those organiza-
tions should be exempt from registration and approved by the State Council at the
same time.” The third one is “organizations which are established at the range of
state organs, organizations, enterprises and providers with the approval of their own
units and perform activities at those certain range.”
3.2 Chinese Legal Provisions Whose Nature as a

Legal Person of Private Education Providers
The classification of private education providers as legal persons is mainly based on

the General Principles of Civil Law, the Provisional Regulations for the
Registration Administration of Public Providers, and the Provisional Regulations
on Registration Administration of Private Non-enterprise Units.
Article 2 of the latest Provisional Regulations for the Registration and
Administration of Public Providers stipulates that “‘public provider’ in Regulations
refers to the public service organizations which are established by the state organs
or other organizations by using the state-owned assets for the purpose of engaging
in the activities of education, science and technology, culture and hygiene.”
According to this definition and the provisions of Article 31 of the Education Law,
“A school or any other providers of education which meet the requirements of a
legal person shall acquire the status of a legal person from the date on which its
application is approved or registered.” Similarly, Article 30 of the Higher
Education Law states, “higher education provider can get the status of a legal
person from the date on which its application is approved. The higher education
institution’s president shall be the legal representative of the provider of higher
education.” From a legal point of view, a public school established upon official
approval has the legal person qualification, and meets the above requirements for
providers as legal persons. Therefore, it should belong to the category of provider as
legal person. In reality, public schools are also treated as providers.
Chinese private education providers as legal persons’ classification and legal
nature are rather vague compared with public education providers. Article 2 of
the Chinese on Private Education Promotion Law stipulates that “this law shall be
applicable to the activities conducted by social organizations or individuals, other
than state organs. The activities can be to establish school or school-running. Those
education providers with non-governmental financial funds, which are geared to the
needs of society.” In other words, the “private education providers” refer to “ed-
ucation providers and other providers of education established and run with
non-governmental financial funds by social organizations or individuals instead of
state organs, to meet the needs of society.” Obviously, private education providers
do not belong to the category of “public providers” as defined in the Provisional
Regulations for the Registration Administration of Public Providers. Although
3.2 Chinese Legal Provisions Whose Nature as a Legal … 83
the Chinese Private Education Promotion Law clearly stipulates that, “private
education providers shall have legal person qualifications,” it is still difficult to find
the answer for private education providers belong to what kind of “legal persons” in
the General Principles of Civil Law. Especially, with social and economic devel-
opment and the emergence of new types of social organizations, the legal person
classification method in the General Principles of Civil Law can trace back to the
planned economy period, when the education can no longer meet the needs of the
market economy development. As a result, it is difficult to classify various newly
emerging social organizations, including private education providers, according to
this law. Such dilemma has not got out until 1998 when the State Council issued the
Provisional Regulations on Registration Administration of Private Non-enterprise
Units, which introduced the concept of “private non-enterprise units” for the first
time. According to the definition in these Regulations, “private non-enterprise
units” refer to social organizations which are established by enterprises, providers,
associations or other civic entities as well as individuals using non-state assets to
conduct non-profit social services. Based on this definition, according to the
General Principles of Civil Law if private education providers have legal person,
qualification and engaged in academic education, cultural tutorials, self-taught
education, pre-school education and other nonprofit activities, they can be regis-
tered as private nonenterprise legal persons and thus be qualified as legal subjects
(Dong). Presently, the vast majority of private education providers in China have
been registered as this category.
Most private education provider’s legal person’ s qualifications are identified as
“private non-enterprise units”. Such classification is not only against the General
Principles of Civil Law but also has actually caused differences between private
education providers and public education providers in legal person’s nature and
identity, and also involves legal differences in personnel systems, social insurances,
taxation and accounting systems, and many other aspects. These systems have led to
the existing inequalities between teachers in private education providers and public
education providers in terms of pension, medical insurance, housing acquisition
funds, personnel file management, and other aspects, affecting the cultivation of
teachers in private education providers. As a result, this has affected the healthy and
sustainable development of private education providers (Qin 2012).
3.3 Policy Practice of Local Governments
On March 5, 2004, Chinese State Council promulgated the Regulations on the

Implementation of the Chinese Private Education Promotion Law. At the end of
2004, Shaanxi Province formulated the Regulations on the Promotion of Private
Education, which was the prelude of private education local legislation in China.
Presently, the practices of registration of private education providers as legal per-
sons are different in China. If the private education providers’ nature is legal per-
son, it helps to solve a controversial problem, which is private education provider’s
legal status can be “equal to each other”. Property right is the core issue of private
education provider’s development because it determines whether private education
providers can develop sustainably and steadily.
In recent years, the central government and some local governments have broken
through institutional barriers and promulgated provisions on the registration of
private education providers as legal persons in legislation, local laws, and other
forms’ of regulations. Although local regulations have affirmed that private edu-
cation as a part of the national education system should get the same legal status as
public education providers, in terms of the registration of legal person, the
administrative bodies for registration of public education providers and private
education providers as legal persons are different. For instance, Article 3 of the
Regulations of Tianjin on the Promotion of Private Education states that private
education belongs to public welfare undertakings and as a part of the national
education system (The Standing Committee of Tianjin Provincial People’s
Congress 2011). Private education providers and public education providers have
equal legal status. However, the following three policies have different regulations.
The three policies are the Notice of Tianjin Municipal People’s Government on
Approving, the Forwarding the Opinions on Strengthening the Regulation and
Administration of Private Education Providers, Guiding the Healthy Development
of Private Education Formulated by the Municipal Education Commission.
According to the policies, “a private education provider who has the license to run
school upon examination and approval shall go through the registration procedures
legally at the civil affairs department.” That is to say, the nature of private education
provider as a legal person should be private nonenterprise legal person (People’s
Government of Tianjin 2008). Similarly, the Regulations of Heilongjiang Province
on the Promotion of Private Education does not specify the specific private edu-
cation providers’ legal person nature, but proposes that their asset and financial
management system should subject to the accounting system for private nonen-
terprise units, which also shows the difference in legal person nature (The Standing
Committee of Heilongjiang Provincial People’s Congress 2007).
There are some measures taken by some other local governments to regulate the
registration of private education providers. Those measures are as follows. First,
establishing the system of recognizing non-profit private education providers as
providers, “privately-run providers,” or “private self-supporting providers” based
on a classification management. Second, improving the legal person registration
measures. Third, specifying the responsibilities of the relevant government
departments clearly. Fourth, improving the registration system for private education
providers as legal persons.
In Jiangsu Province, private education providers engage in academic education,
pre-school education, and special education, which by state-owned assets, and
private education and training providers engage in nonacademic education can be
registered as public providers. Private education providers engage in academic
education, pre-school education, and special education not by any state-owned
assets can register as private nonenterprise legal persons. Private education and
training providers engage in nonacademic education can register as private
3.3 Policy Practice of Local Governments 85
nonenterprise legal persons or enterprise legal persons (Jiangsu Provincial General

Office 2010).
In Shaanxi Province, upon examination and approval by the provincial depart-
ment of education, private non-profit education providers should register with the
provincial civil affairs department according to the local law. Among them, edu-
cation providers who run with donations or capital contributions and do not
for-profit should register as private self-supporting provider legal persons.
Education providers who run with contributions and for-profit should register as
private non-enterprise legal persons (Education Department of Shaanxi Provincial
Government 2013). Audited by the provincial department of education, for-profit
education providers should register by the provincial administrative department for
industry and commerce as enterprise legal persons according to the provincial law
(People’s Government of Shaanxi 2013). For higher education private providers,
the founders should apply for registration voluntarily. Once the legal person attri-
bute is confirmed, it will not be changed in general. If the change is unavoidable,
the provider is required to undergo a qualification examination and the financial
audit. If the relevant requirements are met, upon examination and approval by the
provincial department of education, the founders should apply for the original
registration authority to cancel the former registration, and register in the new
registration authority office.
In Shanghai, private training institutions’ applicants should apply to register for
the administrative department for industry and commerce in accordance with the
provisions of company registration jurisdiction. The administrative department for
industry and commerce should consult the administrative department for education
or the administrative department for human resources and social security at the
same level. Institutions that engage in cultural and educational training should
consult the administrative department for education. Institutions that engage in
vocational training should consult the administrative department for human
resources and social security. As the commercial private training institutions’
interregional migration, private training institutions’ provider should reapply for the
change of registration in ingoing place’s administrative department for industry and
commerce according to the Regulations on Registration Administration of
Companies. The ongoing place’s administrative department for industry and
commerce should consult the administrative department for education or the
administrative department for human resources and social security at the same level.
If a commercial private training provider and its subsidiaries no longer engage in
training activities or not qualified anymore, it shall apply for registration cancelation
or deal with the registration matters such as changing the title and the business
scope in the administrative department for industry and commerce (Shanghai
Industrial and Commercial Administrative Bureau 2013).
In Shandong Province, Weifang City classifies manage non-profit full-time
private education legal person’s registration by the standard of for-profit or not.
Non-profit schools register as private institutions’ legal person, for-profit full-time
private schools register as enterprise legal persons. Part-time private institutions
register as enterprises legal persons, and the non-profit private schools can also
register as private institutions’ legal person. After a private school got the permit in
running a school after the education administration authority’s examination, it can
register according to the license. Private institution legal persons should register in
the civil affairs department, and enterprise legal persons should register in the
administrative department for industry and commerce. Once the nature as a legal
person is confirmed, it will not change without exceptional circumstances (Weifang
Municipal People’s Government 2013).
In Guiyang City, Guizhou Province, nonprofit private schools (kindergartens)
should register as private nonenterprise institutions; operational educational insti-
tutions should register as private enterprises; private nonenterprise units should
register in the civil affairs department, and private enterprises should register in
industry and commerce department. Once the legal person attribute is confirmed, it
cannot change without an exceptional case. The alternation can be done only the
application was reviewed and approved in accordance with statutory procedures
(Guiyang Municipal People’s Government 2013) (Table 3.1).
Table 3.1 Excerpted contents of private schools’ registration of legal person laws and regulations
Laws and regulations Contents
The General Principles of Civil Law Article 50. An independently funded
government agency obtains its legal
personality upon its establishment. The public
institutions and social organizations, which
meets the requirements for a legal person, and
need not go through the procedures of legal
person registration obtains its legal personality
upon its establishment. Those who needs to
undertake legal person registration can obtain
its legal personality after getting approval and
registration
Education Law Article 31. A school and other education
institutions which have the qualifications of a
legal person shall obtain legal personality as of
the day of approval or the date of registration
Higher Education Law Article 30. Higher education institution
obtains its legal personality upon its
establishment. A Higher education institution
has civil rights in accordance with law in civil
activities and bears civil liability
Private Education Promotion Law Article 9. A privately run school shall have the
qualifications of a legal person
Article 17. The examination and approval
authority shall issue a license to private
schools, which gets the approval and sets up
officially
Article 18. A private school, which obtains the
license and registers in accordance with
relevant laws and regulations, the registration
authority shall register according to relevant
regulations immediately
(continued)

Private Education Promotion Law Article 6. Public schools participating in
Enforcement Regulations running private schools shall with independent
corporate capacity
Article 17. The examination and approval
authority shall issue a license for
establishment of a school to the privately run
school for the official establishment of which it
gives approval, and shall announce the private
schools and their statutes to the public
Provisional Regulations on Registration Article 3. The establishment of a private
Administration of Private Non-enterprise non-enterprise unit shall be subject to the
Units review and approval of its relevant governing
unit, and shall be registered in accordance with
the provisions of these Regulations
Article 5. The civil affairs department of the
State Council and the civil affairs departments
of the local people’s governments at or above
the county level are the registration
administration organs of the people’s
governments at their corresponding level of
private non-enterprise units
Provisional Regulations for the Registration Article 5. The public institution registration
Administration of Public Institutions administration authority, which belongs to the
governments at the county level or above
(“registration administrative authority” in
short) shall be responsible for carrying out
public institution’s registration. The
government-established administrative organs
at the county level or above shall strengthen
the supervision and inspection of public
institution’s registration carried out by the
registration administrative organs. The public
institutions shall classify to manage at
different levels
Outline of the National Medium-and Article 44. We shall explore classification
Long-Term Plan for Education Reform and management of for-profit and non-profit
Development (2010–2020) private schools actively. We shall standardize
private school’s legal person registration.
Effectively implementing private school legal
person property rights
Ideas of Shaanxi Provincial People’s Article 5. Implementing classification
Government on Further Supporting and management. Private higher educations and
Standardizing the Development of Private higher education’s learning-support
Higher Education institutions classify into non-profit and
for-profit categories. The organizers apply for
registration voluntarily, and the relevant
provincial authorities shall be responsible to
audit. Among them, non-profit higher
(continued)

education institutions include institutions run
by donations, institutions run by capital
contributions, which do not demand a
reasonable return, and institutions run by
capital which demand reasonable return. We
shall safeguard the legitimate rights and
interests of various types of private schools,
regulate the schools strictly, support the
development of non-profit schools vigorously,
guide and promote the development of
for-profit schools actively, and form and
improve the classification management system
for non-profit and for-profit private higher
education institutions gradually
Article 7. Improving legal person registration
method. Upon review by the provincial
department of education, non-profit schools
shall register in the provincial civil affairs
department. Among them, schools run by
donations and capital contributions which do
not demand a reasonable return shall register
as private self-supporting legal person; schools
run by capital which demands a reasonable
return of investment shall register as private
non-enterprise units. Upon review by the
provincial department of education, for-profit
schools shall register in the provincial
administrative department for industry and
commerce according to law as enterprise legal
persons
Several Ideas on Implementing the National Article 3. Exploring the classification
Comprehensive Pilot Reform of Private management mechanism. Private schools shall
Education and Accelerating the Reform and classifyed to management into two categories:
Development of Education for-profit and non-profit. Non-profit full-time
private schools shall register according to law
as private legal person, for-profit full-time
private schools shall register according to law
as enterprise legal persons; part-time private
schools shall register as enterprise legal
persons. If a part-time private school is a
non-profit school, it can also register as a
private enterprise unit legal person. Private
enterprise unit legal persons shall register in
the civil affairs department, enterprise legal
persons shall register in the administrative
department for industry and commerce. Once
the legal person attribute is confirmed, it
cannot be changed without exceptional case
However, based on the Private Education Promotion Law in People’s

Republic of China as no basic law has clearly specified the legal person attribute of
privately run school, the local policy implementation faces great challenges.
Although a number of provinces and cities nationwide have formulated new regu-
lations on legal person registration, local regulations and rules have endowed private
higher education institutions with the designation of “provider as legal person”. The
formation and promulgation of these normative documents are based on the analysis
of the relevant policies, laws, and regulations. Fundamentally, these innovations are
advisable, but there is no direct, clear support for them from the basic laws, so the
above documents are not highly authoritative and operational (Yu 2016).
3.4 New Trends After the Promulgation

of the Private Education Promotion
Law Amendment
On November 7, 2016, the decision to amend the Private Education Promotion

Law was deliberated and adopted at the 24th Session of the 12th National People’s
Congress, and the decision came into effect on September 1, 2017. The core of the
amendment is the classification management of for-profit and non-profit private
schools. The difference between for-profit and non-profit is that the founders of
non-profit private schools cannot obtain the proceeds from running schools, and the
surpluses from running schools should be entirely used for running schools.
However, for-profit private school organizers can obtain the proceeds from running
education providers, and the surpluses from running education providers are han-
dled according to the Company Law and other relevant laws and regulations. The
amendment law specially stipulates that the founders of non-profit organizations
should not make any profits. Education departments, financial departments, and the
civil affairs departments may strengthen the financial supervision of non-profit
private schools and crack down on the profit distribution. For-profit providers are
equivalent to ordinary enterprises which register in the administrative department
for industry and commerce, and will no longer face any obstacles in financing and
asset securitization.
Ministry of Education, the Ministry of Human Resources and Social Security,
the Ministry of Civil Affairs, the State Commission Office of Public Sectors
Reform and the State Administration for Industry and Commerce jointly issued
Detailed Rules on the Implementation of Private Education Classification
Management on December 30, 2016. (Ministry of Education, Ministry of Human
Resources and Social Security, Ministry of Civil Affairs, State Commission Office
for Public Sector Reform, and State Administration for Industry and Commerce
2016). At the same time, the Ministry of Education, the Ministry of Human
Resources and Social Security, and the State Administration for Industry and
Commerce jointly promulgated another document Detailed Rules on the
Implementation of Supervision and Administration of Private Schools. This
document clearly defines the private school organizer’ nature as a legal person
(Ministry of Education et al. 2016). According to the Provisional Regulations on
Registration Administration of Private Non-enterprise units which were promul-
gated in 1998, most private schools have currently been registered in the civil affairs
departments as private non-enterprise units and the legal persons. However,
according to the General Principles of Civil Law, legal persons classified into four
categories: enterprises, official organs, providers, and social organizations. Private
non-enterprise units as legal persons are not included in the four categories. Private
non-enterprise unit as a variant of “private provider” is not a rigorous legal concept.
As such ambiguous “neither fish nor flesh” dilemma, private schools can hardly get
the equivalent legal status of public schools which register as public schools in the
personnel system, social insurance, taxation, and other aspects. Private schools are
even regarded as enterprises and thus are required to pay business tax and corporate
income tax.
The newly revised Private Education Promotion Law proposes that the founder
of a private school may be chosen as the non-profit or for-profit private school
independently. After obtaining a license of running a school, a private school shall
conduct legal person registration, and the registration authority shall deal with the
formalities for the private school according to the law. The Standing Committee of
the National People’s Congress (NPC) issues the Civil Code General Principles
Draft, proposed to classify legal persons into for-profit and non-profit those two
categories. Such classification eliminates the influence of legal person classification
in legislation based on the ownership types and will also guarantee private schools
to register as legal persons. This legal person property covers for-profit and
non-profit into those two categories. Based on this classification, different taxation,
land, fees, operation mode, and other institutional arrangements apply to these two
kinds of legal persons, making private schools’ nature as a legal person more
distinct (Table 3.2).
It can expect that there will be more changes of the nature as a legal person after
amendments issued in the near future. The Ministry of Civil Affairs promulgated
the Notice on the Public Opinion on the Provisional Regulations for the
Registration and Management of Private Non-enterprise Units (Revised Draft for
Comment) on May 26, 2016. This notice stated that “in order to reflect the ori-
entation of social service agencies and their nature accurately, the ‘private
non-enterprise unit’ was renamed ‘social service provider’, and the ‘Provisional
Regulations on Registration of Private Non-enterprise Units’ was renamed ‘Social
Services Organization Registration Regulations.’” It means the term “private
non-enterprise” will be the official term. The non-profit school legal person’s
property will change to social service agencies uniformly (Ministry of Civil Affairs
2016). The new legal person property will also affirm in the state law of General
Principles of Civil Law. On March 15, 2017, the National People’s Congress
(NPC) issued a new civil code, the civil legal system is divided into for-profit legal
persons, non-profit legal persons, special legal persons and unincorporated orga-
nization in Chapter 3 (National People’s Congress). Non-profit legal persons
include public providers, social organizations, foundations and social service
3.4 New Trends After the Promulgation of the Private … 91
Table 3.2 The change of Chinese private school’s nature as a legal person in the new law
Category Non-profit private Non-profit private For-profit private school
school I school II
Legal Private non-enterprise Provider as legal person Enterprise as a legal
Person as legal person person
Registration 1. Social organizations 1. State organs or other 1. Social organizations or
conditions or individuals other organizations individuals other than
than state agencies 2. Use of state-owned state agencies
2. Use non-state assets assets; 2. Use non-financial funds
3. Non-profit social 3. For social good, 3. Pursuit of property
organizations non-profit rights and return on
investment
Registration Civil administration Public Welfare Providers Industry and commerce
agencies departments registration body within department
government set up
committee jurisdiction
Accounting Private non-profit Institutional accounting Enterprise accounting
system organization system System
accounting system
Legal basis Interim Regulations on Interim Regulation on Corporation Law
Registration the Registration of Public
Administration of Welfare Providers
Private Non-enterprise
Units
Social 1. Enterprise standard Public welfare providers Enterprise standard
insurance of 2. Public Welfare standard
employee Providers standard in
particular region
Tax policy 1. Equal treatment as 1. Equal treatment as Taxation by enterprise
public schools public schools standard, but granted
2. Tax exemption on 2. Tax exemption on preferential policies
income with tax income with tax (while preferential
exemption exemption qualification policies are unclear)
qualification
agencies. Social services providers as the upcoming new legal attributes according
to this law, which makes significant progress.
Private school’s property becomes more and more clear. However, there are still
some challenges. Lacking of practical precedent and clear supportive policies causes
the private schools do not know how to choose their legal property from non-profit
and for-profit. Choosing non-profit is equal to donate the funds, which needs to run
school, leading to the loss of the remaining claims to and control of the school. By
contrast, choosing for-profit means not only facing the corresponding policies’
uncertainty, but also the risk of encountering institutional discrimination in the
process of providing education. It is a tough decision for private education providers
after the implementation of the new law. Given the large amount of private schools,
and the great difference among those schools in China, the implementation of
non-profit and for-profit taxonomy management is an extremely complicated sys-

tematic project. More progress will be made by developing more policies.
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Chapter 4
The Ownership of Property Rights
of Chinese Private Institutions
Nowadays, Chinese private schools are commonly afflicted with the problems of
the vague ownership of property rights and infringement of property rights. To a
certain extent, it drains their enthusiasm and goes against the overall educational
quality improvement. In addition, there are also various troubles, such as private
school raising capital, the conflict between profitability and public welfare of the
private school and the establishment of a relationship between education providers
and governments. Therefore, establishing a reasonable property rights system
entitling private school with clear ownership of property rights will be of great
significance in promoting the prosperity and development of private education.
4.1 Chinese Relevant Policies and Regulations
In recent years, in order to formulate the property right policies systematically and
truly promote the private school’s legal person property right clarification private
school, the relevant state departments have issued a series of laws and regulations.
Local governments promulgated new policies, and took new measures. These
policies, laws, and regulations play an important role in promoting the orderly and
standardized development of the private school.
4.1.1 Policies and Regulations at the National Level
Since the promulgation of the People’s Republic of China Private Education

Promotion Law in 2002, private education has witnessed rapid development, and
has become an integral part of China’s education system. In order to further pro-
mote the sustainable development of the private school, the State Council, Ministry
of Education, and other departments released a number of policies and regulations.
96 4 The Ownership of Property Rights of Chinese Private Institutions
The 24th Session of the 12th National People’s Congress issued the Decision on the
People’s Republic of China Private Education Promotion Amendment Law on
November the 7, 2016. Those above policies provide detailed provisions on the
ownership of the private school’s property rights private school.
The following contents are the provisions on the property rights’ issue in the
People’s Republic of China Private Education Promotion Law. Article 35 stipulates
that “[a] private school shall enjoy all the legal person property rights which were
formed by the founders’ invested assets, state-owned assets, donated properties and
the education provider’s accumulated assets.” Article 36 stipulates that “[d]uring
the period of a private school existence, all its assets shall be managed and used by
its education provider, school or individual cannot encroach upon the assets without
allowance.” According to the requirements of the above two articles, during the
period of a private school’s existence, its properties qualify as legal person prop-
erties. After the termination of a private school, the ownership of its properties
should meet the requirements of Article 59, which says, “The properties of a private
school shall be cleared according to the following order. Firstly, repaying students’
tuition fees, incidental expenses and other fees. Secondly, providing wages and
social insurance fees to faculty and staff. Thirdly, repaying other debts. The
properties left after clearing the above-mentioned items shall be disposed pursuant
to relevant laws and regulations.” In addition, Article 51 stipulates that “[a]fter a
private school has deducted its costs, has reserved development funds and has
drawn other necessary expenses in accordance with relevant regulations of the state,
the investors may make reasonable returns from the balance of the education
provider.” The principle affirmed the legitimacy that the investors of a private
school may make reasonable returns (Ministry of Education 2002). Overall, the
People’s Republic of China Private Education Promotion Law specifies the rele-
vant provisions on legal person’s property rights and management, and use of
private school assets. It shows the principle of taking into account both personal and
social interests. It provides a clear legal basis of ownership regulation, the use and
management of private school’s assets as well (Han and Zhang 2004).
The Regulations on the Implementation of People’s Republic of China Private
Education Promotion Law (“Implementation Regulations” in short) specifies the
capital contribution methods of private school founders, and the investors’ right to
make a return on their investment. For example, Article 5 states that “[t]he private
school founder(s) may make contributions in cash, entities, land use right, intel-
lectual property right or right of other properties. The subsidies given by the state,
the tuition charged to the students, the money borrowed and the donated properties
accepted by the private school shall not fall within the scope of capital contributions
of the private school.” Article 6 also stresses that “[a] public school which par-
ticipates in running a private school shall be entitled to enjoy the right and interests
of a founder in accordance with the law, and also shall perform the duties of
managing state-owned assets, preventing the loss of state-owned assets.” Article 44
stipulates that “[a]n investor who makes reasonable gains in accordance with the
articles of the private school constitution may, at the end of each fiscal year, make
4.1 Chinese Relevant Policies and Regulations 97
return on investment from a proportion of the operating school’s balance. The term
“education provider-running balance” mentioned in the Private Education
Promotion Law and the Implementation Regulations refers to the balance of annual
net income which excludes private school’s costs, social donations, state-funded
assets, reserved development funds in Implementation Regulations and other nec-
essary expenses in accordance with relevant regulations of the state.” Article 45
stipulates that “[a] private school shall determine the proportion of gains the
investors can make from the balance of the education provider according to the
following factors. The first one is the items and standards for the tuition fees. The
second one is the proportion of the tuition fees which used in teaching activities and
school improvement. The third one is the operational level and quality of education.
If the tuition fees higher than other private schools of the same level, the proportion
of teaching activities and school improvement is small, and the private school’s
education quality is low, the proportion of returns the investors make from the
balance of the education provider will no more than that of other private school in
the same level.”
To further implement the Private Education Promotion Law and the
Implementation Regulations, the State Council has issued the Notice of the State
Council on Strengthening the Regulation and Administration of Private Higher
Educational Institutions and Guiding the Healthy Development of Private Higher
Educational Institutions. The regulation requires that “[a] private higher education
institution shall maintain legal person property rights. The investors shall fulfill
their duties of contributing on time whole-heartedly. The assets which have been
invested in a school shall be verified by a certified public accountant, transferred to
the school and shall not be retained, misappropriated or appropriated by any
organization or individual” (General Office of the State Council 2006). Article 6 in
the Several Provisions on the Administration of Non-state-operated Colleges and
Universities which is promulgated by the Ministry of Education clearly states that
“[t]he money borrowed, tuitions charged from students, donated properties or the
state’s aids accepted by a non-state-operated college or university are not the
investors’ capital contributions. The non-state-operated college or university shall
be entitled to enjoy the legal person property right to the assets which put into it by
its investors, the state-owned assets, donated properties, as well as the accumulated
income from running it. No organization or individual may retain, misappropriate
or usurp any of its assets” (Ministry of Education 2007).
The Private Education Promotion Law Amendment implements a classification
management system for the private school. For instance, “private school’s founder
may decide to be a non-profit or for-profit private school independently. However,
it shall not form any for-profit private school providing compulsory education. The
non-profit private school founder shall not obtain any profit from running a private
school and shall use all of the balance for running the school for the school
maintenance. The founder of a for-profit private school may make profit from
running a school, and use the balance to run the school under the Company Law and
other relevant laws and administrative regulations” (Xinhua Net 2016). This
clarifies the problems and contradictions in the nature as a legal person and own-
ership of property rights of private schools at the legal level.
The State Council released the Guideline on Encouraging Social Organizations
and Individuals to Run Education Providers to Promote the Healthy Development
of Private Education on December 29, 2016. It reaffirmed that “[p]rivate schools
(including other private institutions) should classified differently to be non-profit or
for-profit. The founder of a non-profit, private school shall not make any profit from
running schools, and shall use all of the balance for running schools in the main-
tenance of the education provider. The for-profit private school’s organizer can
make profit by running school, and all the earning shall distribute according to
relevant regulations. Private schools shall be entitled to enjoy all the legal person
property rights in conformity with legal provisions.” Article 10 gives the latest
provisions on ownership of property rights when a private school withdraws from
the market. It stipulates that “[a]fter the termination of a private school run by
donations, the properties left after clearing the balance should be used for education
and other social undertakings. For the private schools, which registered as
non-profit and established before the announcement of Decision on People’s
Republic of China on the Private Education Promotion Law Amendment on
November 7, 2016, when terminating the status, the schools shall compensate or
reward the investors according to relevant regulations if the school possess prop-
erties after clearing the balance. The private schools, which register for-profit
school, those schools shall carry out financial liquidation, define property rights
clearly defined according to laws. Once their status is terminated, their properties
left after clearing the balance shall be distributed in accordance with the relevant
provisions prescribed by People’s Republic of China Company Law. Specific
measures shall be formulated by the local government directly with the guidance of
the Central Government. For the private schools which were established after
November 7, 2016, the properties shall be distributed according to their constitu-
tions and other relevant regulations” (The State Council 2016).
4.1.2 Relevant Provisions of Local Governments
As there are great regional disparities in China, the local governments of provinces/
municipalities shall take on the task of formulating the supporting policies after the
promulgating of the national private education law. Therefore, in order to adhere to
the Private Education Promotion Law and its Implementation Regulations, local
governments’ issue-related documents with ample details of implementation. These
documents try to clarify the legal person’s ownership of property rights. The
specific content involves the following aspects.
4.1.2.1 Specifying the Private School’s Asset Transformation

and the Principles of Investors’ Capital Contribution
The specific requirements determine various types of assets transformation.

Guangdong Provincial Department of Education promulgates the Opinions on
Promoting Standardized Characteristics for Private Education Development. This
regulation stipulates that monetary assets invested in a private school should be
verified by a legal capital verification authority, and then transferred to the school’s
registered owner. Nonmonetary assets invested in a private school should be
assessed by a qualified intermediary and then transferred to the school’s registered
owner. Private higher education institutions, which have not completed assets
transformation should have done the asset transformation by 2018 (People’s
Government of Guangdong Province 2013). The Opinions on Further Supporting
and Regulating the Development of Private Higher Education promulgated by
Shaanxi Province requires that when private school’s investor transfers the regis-
tered land and housings in his possession to the education provider, the values of
such land and building should no greater than the original values (Education
Department of Shaanxi Provincial Government 2011). Without the approval of the
original land use right, the usage of land for education should not be changed, and
the right to use the land should not be transferred. The Notice on Further Promoting
the Development of Private Education promulgated by Hunan Province had
requirements. It says, a private school must clearly define its property rights,
establish a clear ledger of accounts for the investor’s contributed funds, state-owned
assets, donated assets, and the education provider’s accumulated assets, register
them individually and transfer them to the education provider as the registered
owner (Hunan Private Education Network 2011a).
The principles of funding for all types of founders are specified. In Shanxi
Province, the private school’s founder(s) may make contributions by cash, material
goods, land use rights, intellectual property rights, or other property rights. Where
the contributions are made in material goods, land use rights, intellectual property
rights, or other property rights, the contributions should be assessed for the
assessment qualifications by an intermediary. Where the contributions are in
intangible assets other than land use rights, the contributions should not exceed
25% of the total amount of contributions of the private school. The founders of a
private school shall fulfill their obligation to make complete contributions on time.
The assets invested by the founders in a private school should separate from other
assets of the founders (The Standing Committee of the People’s Congress of Shanxi
Province 2006). In Hubei Province, the founders of an ordinary private college or
university, which were approved before the promulgation of the Private Education
Promotion Law have considered several factors. For those whose accumulated
assets have reached a certain level but the proportion of capital contribution is not
explicitly defined, one-off incentives of no more than 15% of the education pro-
vider’s net assets (excluding state-owned assets and donated assets) may be given
to the founders as their initial investment amounts according to their contribution to
the development of the education provider. In addition, this must take place after
being recognized by the teachers and staff representatives’ congress, approved by

the education provider’s board and reviewed by the examination and approval
authority. In relation to the total investment in the college, the proportion of
intangible assets invested by a college or university as the founder in an inde-
pendent college should be agreed upon by the relevant parties in accordance with
the corresponding provisions of the state. When an independent college changes
into an independently established ordinary private college, the college or univer-
sity’s founder is not allowed to charge the independent college in the name of
intangible assets devaluation (People’s Government of Hubei Province 2013). The
Chinese government released the Implementation Guidance of the People’s
Government of Anhui Province on Encouraging Social Organizations and
Individuals to Provide Education for Promoting the Healthy Development of
Private Education on October 17, 2017. This guidance supports social funds and
private schools to take advantage of financing instruments such as Build–Transfer
model, Build–Operate–Transfer model, Corporate Bond projects, and Medium-term
notes in accordance with the law to invest private schools (People’s Government of
Anhui Province 2017).
4.1.2.2 Clarifying the Earnings from Private School Stakeholders’

Property Rights
In terms of private school’s land-use right, Zhejiang province promulgates the

Opinions on Promoting the Healthy Development of Private Education. The
“Opinions” stipulate that a nonprofit private school can get the land-use right by
administrative allocation, and its land use and the way to obtain the right to use the
land shall not be changed if it is originally obtained by payment; for-profit edu-
cation providers should have the right to land use by payment. If the land is
originally supplied in the form of administrative allocation, it should be transferred
according to law, and the education provider should submit a land transformation
fee or make an agreement based on the price assessed, a form of investment
(shares), leasing, or other forms (People’s Government of Zhejiang Province 2013).
The Opinions on Promoting Private Education Development promulgated by
Guizhou Province stipulates that the land used for the new construction and/or
private school expansion, and meets the qualifications of the land allocation cata-
logue which shall be supplied by means of administrative allocation, its use shall
not be changed without authorization. If a private school has to obtain land use
rights by transfer according to law, the governments at or above the county level
may give priority to transfer land use rights (People’s Government of Guizhou
Province 2011).
In terms of the proportion of the founder’s contributions and return on invest-
ment, Shaanxi Province stipulates that when a non-profit school’s investor requires
return on investment, the investor can obtain return from the school’s balance on an
annual basis after the education provider has deducted its costs, reserved devel-
opment funds, and drawn other necessary expenses in accordance with relevant
national regulations. The application for this return shall be undertaken by the
education provider’s decision-making organ, and the amount shall be determined
by the administrative department for education in conjunction with the relevant
departments based on the original capital contribution, additional investment as
well as the education provider’s tuition income and balance. The return on
investment can account for 40% of the education provider’s balance at most. If the
return on investment obtained continues to be used for education provider devel-
opment, the return shall be included in the additional amount of capital contribution
and enjoy preferential tax policies in accordance with the relevant provisions.
For-profit education providers receive returns according to the corporate system
(Education Department of Shaanxi Provincial Government 2011).
In terms of private school’s net assets allocation, the Decision on Promoting the
Development of Private Education promulgated by the People’s Government of
Inner Mongolia Autonomous Region stipulates that when a private school termi-
nates its status, it shall, in accordance with law, liquidate all assets accumulated
during the process of running the education provider. All government allocations,
assets formed by corporate sponsorship investment and social donations shall be
handed over and included in the social public assets. In the meantime, a private
school should leave enough assets to pay off debts, make proper arrangement of the
students, and pay the salaries and retirement insurance premiums, medical insur-
ance and other social insurances for the staff. In addition to this, the investors can
have the rest assets. The education provider who has terminated its status must
make suitable alternative arrangements for the current students, carry out financial
liquidation according to the law, return the license and seal for running a school
(People’s Government of Inner Mongolia Autonomous Region 2010).
4.1.2.3 Establishing the Property Right Transfer System

and Standardizing the Transfer of Founders’ Equities
Zhejiang Province requires private school, except those funded by donations, the
contributors or investors may add, release, transfer, inherit, or donate their right and
interests (equities) during the period of existence. For non-profit private school, the
property prices right shall calculate according to the original book value when they
transferred. For-profit private school should carry out the operation according to
market rules. The owner’s equity transfer shall carry out in the local government’s
property right trading platform with a standard manner (People’s Government of
Zhejiang Province 2013).
Regulations of Tianjin on Promoting the Development of Private Education
stipulates that when private schools’ founders withdraw from the institution, they
can transfer their contributions in accordance with law. Other founder(s) of the
private school have the right of first refusal under the same conditions. The
transferees should undertake the rights and obligations of transferors. The capital
contribution of the transferors should concurrently calculate along with that of the
transferees as well (The Standing Committee of Tianjin Municipal People’s
Congress 2011). In Henan Province, when a private school changes its founders and
undergoes liquidation, the financial incentives or cash and equipment granted shall
be listed separately, and shall not be regarded as the founders’ investment. When a
private school terminates its status, the existing incentives or equipment granted by
the government shall be returned to the government channels from which they
came. In this way, these incentives and equipment can use continuously for private
education (The Education Department of Henan Province 2013). Hubei Province
has strengthened the supervision over the equity transfer behavior of the founders of
private higher education institutions. If the private higher education institution’s
founder is a social organization, when the social organization is to transfer its equity
or change its shareholders, the examination and approval authority or registration
authority of the social organization shall consult with the provincial department of
education to review the agreement on changing shareholders and transferring
equity. This can prevent the social organization from secretly withdrawing funds of
the education provider (People’s Government of Hubei Province 2013).
4.2 The Private Education Achievements
The Private Education Promotion Law and other relevant policies and regulations
have effectively regulated the way of running a private school. Presently, the overall
environment for private education development is better, private education enter-
prise has made significant achievements.
4.2.1 The Founders’ Property Rights Separated

from the Assets of Education Providers
In Liaoning Province, the founders of a private school may make contributions in

cash, material goods, land use rights, intellectual property rights, or other property
rights. The assets invested by the founders of private school should be separated
from all other assets. During the period of a private school’s existence, the founders
could not secretly withdraw, occupy, use, dispose, or otherwise misappropriate the
assets of the education provider in any other means (People’s Government of
Liaoning Province 2014). Hunan Province requires that a private school must
clearly define its property rights; establish the ledger accounts for the invested funds
of the investors, state-owned assets, donated assets and the education provider’s
accumulated assets; register them individually; and transfer them to the registered
owner, for example, education provider. Heilongjiang Province requires that the
invested assets of the founders, state-owned assets, donated properties, fees
charged, and the education provider’s accumulated assets should be used and
managed by the private school. The invested assets should be subject to supervision
4.2 The Private Education Achievements 103
from the examination approval authority, the state-owned assets supervision and
administration department and other related departments during the period of a
private school’s existence (The Standing Committee of Heilongjiang Provincial
People’s Congress 2015). Shandong province stipulates that the assets of private
school can only be used and managed in the account of this provider, and cannot be
transferred to any other accounts, and also cannot be deposited into personal
accounts (People’s Government of Shandong Province 2007).
4.2.2 The Property Rights and Equity of the

Legal Persons and Private School’s
Investors Have Gradually Clarified
In Zhejiang Province, for non-profit private education providers, all net assets of
“private education providers that are run by donations” should belong to civil
society. After an education provider terminates its status, the assets should be
coordinated by the education provider examination and approval authority and used
continuously for education. For other non-profit private schools, the investors
should be in possession of the properties (including additional investment during
the period of an education provider’s existence) of the actual amount of contri-
bution. For for-profit private schools, the investors own education provider’s equity
(People’s Government of Zhejiang Province 2013). The Decision on Accelerating
the Development of Private Education promulgated by Yunnan Province states that
private schools and public schools enjoy the same legal status. The laws of the state
protect the properties of private school, and no organization or individual shall be
allowed to retain, misappropriate, or encroach upon them. The private schools’
founders should fulfill their obligations to make contributions according to law, and
complete the process for capital verification and ownership transfer. Other investors
of a private school should enjoy rights and interests as well as undertake the
obligations prescribed by the laws and regulations and the articles of incorporation
of the education provider. They may do this by presenting the contribution cer-
tificate issued by the education provider (People’s Government of Yunnan Province
2009).
4.2.3 Guaranteeing the Investors’ Right to Make Profits

and Reasonable Returns
In Chongqing, after a private school has deducted its costs, reserved development
funds and drawn other necessary expenses in accordance with the relevant
requirements of the Private Education Promotion Law, the investors may gradually
recover their costs and obtain investment return from education provider’s balance
annually. When a private school terminates its status, for the surplus properties after
the debt is settled according to law, the investors may obtain the corresponding
portion of their investment according to the law (Ministry of Education 2010). In
Shandong Province, if private school’s investors require investment return, they
may make this return from the balance of the education provider after the private
school has deducted its costs, reserved development funds and drawn other nec-
essary expenses in accordance with the relevant provisions of the state. Returns on
investment obtained by the investors must be determined after the education pro-
vider’s operating balance is accurately accounted (the accounts are open and
transparent), studied collectively by the board of directors (or council), and reported
to the examination and approval authority or the entrusted management department
for approval. The proportion of investment return should be subject to the relevant
provisions of the state (People’s Government of Shandong Province 2007).
4.2.4 The Reform of Diversified Property Rights Has

Stimulated Education Providers’ Energy
According to the proportion of equity of a private school, there are seven

approaches to operate a private school in China. They are education provider
operated by contributions of individuals, education provider operated by contri-
butions of public education providers, education provider operated by enterprises,
education provider operated by Sino-foreign joint venture, education provider
operated by donations, education provider operated by joint stock, and education
provider operated by education groups (i.e., companies). From 2008, Chongqing
has supported private school’s founders in their capital-raising operations with the
aim of expanding funding sources. To diversify the property rights structure, social
organizations and individuals are encouraged to invest private education by means
of cooperation, joint venture, equity participation, and other approaches
(Chongqing Municipal People’s Government 2008). Yunnan province also
encourages private education project to absorb social capital by means of sole
proprietorship, leasing, joint venture, cooperation, and project financing (People’s
Government of Yunnan Province 2009). Presently, to promote private education,
the Guangxi Zhuang Autonomous Region insists on changing based on the local
context, and carried out a series of pilot reforms to diversify private education
ownership. For instance, schools run by enterprises, privately funded and privately
run school, state-owned and privately run school, purchase services, joint education
provider operation, and so on. Ample experience has been accumulated, and a
number of high-quality private schools with positive reputations and unique char-
acteristics have emerged (People’s Network 2013).
4.3 Problems 105
4.3 Problems
The property rights are the focus of the majority of private school’s founders and
investors, it is also a hot topic in academic circles. Chinese private education has
many problems. For example, the ill-defined property rights, the unknown invest-
ment returns, and the incomplete management system. These problems have seri-
ously hindered the development of the private school. Besides, the following
problems also exist in the current policies and regulations on the issue of private
school’s property right.
4.3.1 Legal Person’s Property Rights Are Incomplete
The stakeholders of the property involved in private schools mainly include the
legal persons and the founders of private schools. The types of property involved
mainly include funds, material objects, buildings and structures, land use rights,
intellectual property rights, and other properties. The concrete functions of the
ownership of property rights involved mainly include the right to possess, use,
manage, seek profits from and dispose of property. Presently, although the sources
of property, types of property, and types of private school’s rights show a diver-
sified development trend, the current policies and regulations have not yet clearly
defined property rights. That is, the current policies and regulations fail to clearly
define the different types of private schools, and should enjoy the right of different
types of properties. The protection of property rights and the interests of the
founders as important stakeholders have not been clearly reflected in the current
laws, regulations, and policies. Only some articles of the Private Education
Promotion Law provide property rights and consider the interests of the private
school’s founders (such as Article 51 about “return on investment,” Article 54
about the change of founders, and Article 59 about the clearance of private school
property. However, these laws and regulations need to develop more.
4.3.2 The Property Right System Is Vague
It can be seen from the provisions of China’s relevant policies and regulations that
there are some problems with the private school’s property right in China, such as
improper definitions of the property rights boundaries, vagueness of property rights,
and improper allocation of property rights. These problems are mainly reflected in
the following two aspects. First, although the Private Education Promotion Law
specifies that during the period of a private school’s existence, its accumulated
assets are the legal person’s property, but it does not clearly specify their ultimate
ownership. That is, the law neglects issues such as the ownership of surplus
property, particularly the property rights of the founders’ investment and the part of
value added by the education provider’s accumulated assets and the distribution of
surplus property when a private school terminates its status. Second, the provisions
on the private school’s property rights do not reflect the founders’ intellectual input
(Lv 2013).
4.3.3 The Status of Subjects’ Property Rights

and the Contents of Powers and Functions Are
not Clear
The provisions on the property right in the Private Education Promotion Law do
not fully reflect the status of subjects’ legal relationships and the definitions of
powers and functions. This is mainly reflected as follows. In terms of the subjects of
property rights, the word “private” is not fully defined. In terms of the powers and
functions of property rights, the law only takes into account the legal person’s
property right as an education provider during its existence, does not give detailed
provisions on the private ownership rights of the founders or the investors. In terms
of allowing the investors to obtain reasonable returns, the law only regards this as a
means of support and incentives but does not formally recognize the profit-oriented
investors’ right to returns on investments. In terms of disposal of assets after
clearance of debt, more detailed provisions are needed.
4.4 Solutions
The above analysis shows that the current policies and regulations on the ownership
of property rights of private school have problems such as unclearly defined con-
notations, lacking of provider norms and poor operability, which cause unclear
property rights as well as the vague rights and obligations of private school. In order
to clarify the ownership of private school’s property rights, the following measures
should be taken.
4.4.1 Adjusting and Amending the Current Policies

and Regulations to Make Them Cohesive
and Consistent
Chinese the 24th Session of the 12th National People’s Congress adopted the
Decision on the Promotion of Private Education Law Amendment on November 7,
2016. This document will act as the guidance of Chinese private education
4.4 Solutions 107
development. This is especially true for the decision to implement the classification
management system of private school requested by the Amendment, which will
have a significant effect on the nature as a legal person and property rights of private
school. Therefore, in accordance with the new requirements of the Private
Education Promotion Law Amendment, the National People’s Congress or the State
Council should coordinate the relevant departments such as the Ministry of
Education and the Ministry of Finance, to formulate special regulations for the
management of property rights of private school as soon as possible. It is urgent to
revise the conflicting articles in the Education Law, the Private Education
Promotion Law, the Regulations on the Implementation of the Private Education
Promotion Law, the Provisional Regulations for the Registration Administration of
Private Non-enterprise Units, the Accounting System for Non-governmental
Non-profit Organizations, the Guarantee Law, the Property Law and many other
laws and regulations. This can help alleviate the worries of the founders and protect
the rights and interests of the private school’s founders according to law.
4.4.2 Clarifying the Private School’s Property Rights

as Legal Persons According to Law and Clearly
Defining the Ownership of Assets Invested
by the Private School’s Founders
It is necessary to define the ownership of assets of private schools and the rules for
income distribution for those subject to private school’s property rights. When the
ownership of assets was transferred, the service fees should reduce to the cost of
production of a certificate or license. Additionally, the approval process should
simplify so that the founders can complete the registration of the ownership transfer
of assets within the prescribed time limit. Except for private schools, which are run
by using donations, the founders should be in possession of the assets formed by
their contributions, which will eliminate their concerns about the ownership of
assets after the ownership has been transferred. In this way, the founders will
transfer the assets to the education providers as registered owners and reduce the
risks associated with running schools.
4.4.3 Improving the Investment Return System to Ensure

Reasonable Returns
Whether or not a private school requires investment return does not affect its
beneficial contributions to the public. If a private school does not require investment
return, its founders should grant certain rewards to encourage the operation of
education providers. If a private school requires investment return, its founders and
investors should allow to obtain returns from the education provider’s balance on
an annual basis in order to ensure quality and the stable development of the edu-
cation provider. The returns which continue to be used for the operation of edu-
cation providers can be included in the amount of total capital contribution. Return
on investment is limited only to the parts of original investments and reinvestments
of founders and investors, the education provider’s public welfare assets are
excluded, assets formed by rolling policy development and accumulated assets of
the education provider in the calculation basis for making returns.
4.4.4 Establishing a Standard System for the Recognition

and Circulation of Private School’s Property Rights
According to the standards for classification management, we should formulate

separate measures for the recognition and circulation of property rights of for-profit
private schools and non-profit private schools, and clarify the earnings entitlement
from property rights for the stakeholders of all types of private schools. Within the
education provider’s accumulated assets, the contributions of founders together
with the source of assets and the change of founders should all be taken into
consideration. In addition, the subjects of property rights and the ownership of
assets should also further clarify.
References
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development of private education. Retrieved from http://www.zhejiang.gov.cn/art/2013/10/17/
art_13012_105181.html
People’s Network (2013) Guangxi sets up the private education association to explore diversified
forms for running schools. Retrieved from http://edu.people.com.cn/n/2013/1209/c1053-
23791976.html
The Education Department of Henan Province (2013) Provisional measures of Henan province for
the management of special funds for the development of private education. Retrieved from
http://www.haedu.gov.cn/2013/05/22/1369204058264.html
The Information Opening and Issuing Platform of the People’s Government of Inner Mongolia
Autonomous Region (2010) The decision of the People’s Government of Inner Mongolia
Autonomous Region on promoting the development of private education. Retrieved from
http://www.nmg.gov.cn/xxgkml/zzqzf/gkml/201509/t20150915_494709.html
People’s Government of Hubei Province (2013) Several opinions of Hubei Provincial People’s
Government on further promoting the development of private ordinary colleges and
universities. Retrieved from http://gkml.hubei.gov.cn/auto5472/auto5473/201312/t20131225_
484023.html
The Ministry of Education (2002) The law of the People’s Republic of China on the promotion of
private education. Retrieved from http://www.moe.edu.cn/s78/A02/zfs__lEft/s5911/moe_619/
201507/t20150709_193171.html
The Ministry of Education (2007) Several provisions on the administration of non-state-operated
colleges and universities. Retrieved from http://www.moe.edu.cn/publicfiles/business/
htmlfiles/moe/moe_621/201001/81842.html
The Standing Committee of the People’s Congress of Shanxi Province (2006) The measures of
Shanxi province for the implementation of the law of the People’s Republic of China on the
promotion of private education. Retrieved from http://www.chinalawedu.com/falvfagui/
fg22598/236739.shtml
The Standing Committee of Tianjin Municipal People’s Congress (2011) Regulations of Tianjin
on promoting the development of private education. Retrieved from http://www.tjwq.gov.cn/
jyj/zcjd/201512/d02d7bab317d4ee0aee68dd60a434778.shtml
The State Council (2016) Guideline on encouraging social organizations and individuals to run
education to promote the healthy development of private education. Retrieved from http://
www.law-lib.com/law/law_view.asp?id=551991
Xinhua Net (2016) The decision of the Standing Committee of the National People’s Congress on
amendments to the law on the promotion of private schools. Retrieved from http://news.
xinhuanet.com/politics/2016-11/07/c_1119867415.htm
Chapter 5
Chinese Private Education Public
Financial Assistance
This chapter focuses on Chinese private education public financial assistance. We

begin with a theoretical framework review, an analysis of the policy reform and
problems emerging in China with that, and ends with a proposal of some potential
solutions, respectively.
5.1 Theoretical Discussions of Private Education

Public Financial Assistance
Issues concerning private education public financial assistance are hot topics in
academia, the discussions can provide theoretical reference for governmental policy
decisions.
5.1.1 The Public Goods Theory Defines the Government’s

Obligation to Provide Private Education Products
In order to know whether public finance should support private education or not?
We should first define clearly what kinds of products and services the market
should be provided, what the government should be provided and what he gov-
ernment and the market should be provided jointly so as to determine the nature of
private education service and by whom it should be offered.
The theory of public goods, proposed by American economists Paul Samuelson
and Richard Musgrave, provides the theoretical basis for defining the boundary of
government and market in market economy. According to this theory, all social
goods classified into three categories: public goods, private goods and quasi-public
goods. These categories based on the criteria of competitiveness and exclusivity of

112 5 Chinese Private Education Public Financial Assistance
goods and services when they are consumed. Among them, public goods are
both non-excludable and noncompetitive. On the contrary, private goods are both
excludable and competitive, while quasi-public goods are between the public goods
and private goods (Fan 2009). Public goods provided by the government, private
goods are provided by the market, and quasi-public goods provided jointly by the
government and the market. Non-compulsory education, including higher educa-
tion, belongs to quasi-public goods with positive externalities. Meanwhile, those
educational services are competitive in consumption. When one person consumes
those educational services of limited supply, others’ consumption will be affected.
On the other hand, such educational services have the nature of exclusive.
Technically those educational service can be segmented so as to some people can be
excluded from consumption by the number of admissions, the screening of
examinations and the charging of tuition fees. At the same time, education services
have positive externalities. If one is educated, all of his or her family, descendants,
even the society can benefit.
As a result, educational services belong to quasi-public goods with positive
externalities. They should provide jointly by the government and the market. The
government has the responsibility and obligation to provide education services, and
the governmental finance should support education bear part of its costs. Academic
research on the nature of private education is relatively scarce. In this study, private
education services and public education services are basically same in nature, and
belong to quasi-public goods or services with positive externalities. The difference
is that the private product attributes are strong because such educational services are
highly exclusive, and someone with low income can exclude through higher tuition
fees. Therefore, private education should afford jointly by the government, educated
individuals and families, and the government has the responsibility to provide
financial support for private education.
5.1.2 Education Equity Theory Supports the Government

Provides Equal Education Opportunities for Students
in Private Education
For a long time, private schools have regarded as the supplement of public schools
because the education provided by the government cannot benefit all people and all
areas due to the limited material, financial and other resources. Private can fill this
gap, and private schools provide education opportunities to some low-income
groups, and ensure the realization of educational equity to a large extent. As the
private school’s source of fund mainly depend on tuition and incidental expenses, if
there is no sufficient funding, when education costs increase, private schools have to
raise tuition fees. This in turn will increase the economic burden of educatees and
has a direct impact on some students’ education opportunities (Bi 2015).
5.1 Theoretical Discussions of Private Education Public Financial Assistance 113
Torsten Husen, a famous Swedish educator, holds the opinion that the oppor-
tunity equity of the education includes three arrangements of ideas mainly: starting
equity, process equity and result equity. That is to say, all educational subjects
should enjoy fair rights in accessing educational resources, such as being educated,
school environment conditions, and teacher’s employment opportunities in edu-
cation. Some researchers believe that the government is a natural representative of
the public interest in society, from the perspective of education and social fairness,
government has unshrinkable responsibility for the development of
non-government funded schools (Wang and Li 2004). A non-subsidized or merely
symbolic verbal support for private education may result in a substantial increment
in tuition fees for students. This will greatly reduce the education opportunities for
the disadvantage groups and result in unfair access to education providers, thereby
social hierarchical system was increasingly consolidated. This situation runs
counter to the government’s public functions and the principles of equity in edu-
cation and society. Thus, according to educational equity theory, students in private
schools should enjoy the same educational resources as public education schools’
students. In short, the government must subsidize private education.
5.1.3 Education Cost Sharing Theory Clarifies

the Government’s Responsibility in Sharing the Cost
of Private Education
The education cost sharing theory was first proposed by American education
economist D. B. Johnstone in 1986, he argued that education costs should be shared
by various parties who earn benefits of education, for instance, by taxpayers
(represented by the government), parents and the public figures (donors). According
to this theory, the costs of private education, as an important part of the education
system, should also share by the government, society and individuals (Yang and
Zhu 2007; Wang and He 2008).
The way of distribution follows two principles. The first one is the benefit
acquisition principle. Those who profitable should pay for education. The second
one is the ability-to-pay principle, that is, all those who benefit from education
should pay for education based on their ability to pay, and those who are more
capable should pay more (Huang 2007). The healthy development of private
education will not only benefits students, but also promotes the government to play
an important role in this field. While sharing the responsibility for education with
the government, private schools can reduce government’s financial burden.
According to the statistics, the government would reduce its economic burdens by
providing financial support to private schools rather than by running schools.
Therefore, the government should take responsibility to “escort” the private
school’s development actively.
5.2 Current Situation Demands Public Financial

to Support Private Education
Practically, as a large developing country with nearly 1.4 billion populations, China
has to provide considerable financial assistance to support private education.
5.2.1 The Contradiction Between the Government’s

Insufficient Investment in Public Education
and People’s Increasing Demand for Diversified
Education Requires the Development of Private
Education
The Outline of the National Medium- and Long-Term Plan for Education Reform
and Development (2010-2020) had some education plans. For example, promoting
the spread of pre-school education. consolidating and improving the level of
nine-year compulsory education; popularize upper secondary education, increasing
the gross enrollment rate to 90%. Propelling higher education popularization,
increasing the gross enrollment rate to 40%. Eliminating illiteracy among young
and the middle-aged. The new workers’ average years of school in the labor market
will increase from 12.4 years to 13.5 years. The average years of schooling of the
working-age population will increase from 9.5 years to 11.2 years, of which the
higher educational population is the total population will reach to 20%. The number
of post-secondary educated people will double.”
However, despite continuous economic development and overall enhancement
of national strength, China is still a developing country with low GDP per capita.
Moreover, China abolished the one-child policy, and initiated the universal
two-child policy in 2015. The need of education will increase in the future. As a
result, it is impossible for China to achieve the aim mentioned above, so it is fully
depending on public education, which mainly funded by public finance. In addition
to the shortage of employment, the deepening of reform and industrial transfor-
mation causing rapid change in job market, the tertiary/service industry needs a
large number of new and diversified talents, which cannot train fully by public
education (Wu 2010).
In contrast, the development of private education not only provides a more
flexible learning system and a more open learning channel, but also provides stu-
dents with more equitable educational opportunities. In other words, private edu-
cation has, as much as possible, met people’s educational needs and stimulated the
education diversification. The development of private education will benefit a
wide-range people. Consequently, it may be an ideal option for Chinese govern-
ment to support private education in order to fill the gaps of the insufficient public
education. Practically, the Outline of the National Medium- and Long-Term Plan
5.2 Current Situation Demands Public Financial to Support Private Education 115
for Education Reform and Development (2010-2020) states that China will correct
various types of discrimination policies for private schools, and formulate prefer-
ential policies to promote the development of private education (The State
Council of People’s Republic of China, 2010). Recently, the chairman Jinping Xi
noted that the government will encourage different society groups to develop
education in the 19th National Congress of the Communist Party of China (Xi
2017).
Faced the tremendous social and individual demand, the number of private
schools has skyrocketed over the years. In 2016, the number of private schools at all
levels was 171,000, it has increased 31,000 since 2012. At the same time, there
were 48.25 million students in private school, the number has increased by 9.14
million (National Bureau of Statistics of the People’s Republic of China 2017).
5.2.2 Education Partial Privatization Improves Public

Education Efficiency
As for the utilization of public finance, private schools can provide students with
the same educational service as public schools by using less public resources, it will
improve public education efficiency by pressure reversion the transmission. The
current situation in China is that public funds obtained by private schools only
equals to one-seventh of their financial contributions. That is to say, the usage of
public finance in private school is more efficient than public schools on one hand,
private schools and public schools are treated unfairly on the other hand (Wu and
Wang 2017).
The main funding sources of private education are the founders’ original input,
tuition and fees, government budget appropriations, tax benefits, charity and other
foundations (mainly donations and funding support for education
provider-enterprise cooperative education provider operations), bank credit funds,
funds from non-bank financial institutions and oversea funds (Yang 2010).
However, the source of Chinese private school’s operation funds is mainly from
tuition and fees. As shown in Table 5.1, the total income of all kinds of private
education in China amounts to 234.09 billion yuan in 2013. The income from
tuition and fees accounts for the highest proportion among various sources of funds,
and the proportion of tuition and fees in private higher education institutions in total
income has reached 78.8%. Although the support from public finance to all types of
private schools at all levels is much higher, the amount is still small. It only
accounts for about 10% of total income of private schools, while donations can
ignore compared with other sources of income. As tuition fees are likely affected by
the level of regional economic development, enrollment scale, students’ ability to
pay and other factors. Simply relying on tuition fees to maintain the private school’s
operation may limit to fulfill the development potential and lead to insufficient
sustainability of private schools.
Table 5.1 Private schools’ main funds sources in 2013 (100 million yuan)
Type of Item
School Total Education Taxes and fees Tuitions Founders’ Donation
income funds levied by the and fees investment income
within government for
public education
budgets
Higher 779.38 67.34 4.88 614.11 34.03 3.42
education
institutions
Secondary 94.48 31.74 2.11 38.84 8.88 0.22
vocational
schools
Senior high 246.79 14.12 3.34 171.79 12.02 1.98
schools
Junior high 251.38 32.84 3.21 144.56 23.70 3.50
schools
Primary 280.94 38.34 8.82 156.77 28.74 1.72
schools
Kindergartens 685.96 41.87 9.47 530.31 40.02 0.50
Source Zhou and Zhong (2016). Development report on private education in China. Beijing:
Beijing Normal University Press
From the perspective of practical reason, lacking adequate government financial

support will lead to the market competitiveness declination and increment of the
risks of private schools. This in turn will cause the decrement of private investment.
Subsequently, the development of private education will have stuck in a frustrated
situation. Accordingly, any private schools’ deeds which provides education to the
public at a cost lower than public education should be encouraged and supported by
the government. Chinese government should provide some subsidies and rewards to
private schools to alleviate their financial burdens, enable them to focus on teaching
and improve the education quality. In addition, the government may also formulate
relevant findings to help private schools.
5.3 Chinese Policies and Public Financial Assistance

to Private Education Reforms
5.3.1 Policy
Since the reform and opening-up policy, China has promulgated a series of laws,
regulations and policies which aims at promoting, supporting and standardizing
private education. A policy system has formed to help private schools’ development
and governance actively according to the law. From the historical dimension, Chinese
public financial assistance policies for private education have generally gone through
the following three stages since the reform and opening-up policy in 1978.
5.3 Chinese Policies and Public … 117
5.3.1.1 Private Education Development Without Public Finance
Before 1982, Chinese government did not take compulsory measures to restrict or
stifle the development of private education for maintaining public education’s
status, nor affirmed it in order to promote the development of private education.
Private education made some progress in such an environment. However, on
account of uncertainties, and there was no social recognition or public financial
assistance for private education, the development of private education was
struggling.
Then the situation was improved. National policies and regulations illustrated
the status of private education clearly between 1982 and 1992. The 19th article of
the Constitution of the People’s Republic of China adopted by the Fifth Session of
the Fifth National People’s Congress on December 4, 1982 stipulates that China
encourages collective economic organizations, state enterprise organizations and
other social resources to run educational undertakings in accordance with law.” It
was the first time that the legal status of private education defined in the consti-
tutional form. However, as for some issues, such as how to develop private edu-
cation, it is important to notice what issues not clearly explain in these authoritative
laws and regulations. In other words, the laws only provided guidance and path for
private education. However, how to run a private school depends on the individual
school’s exploration. As a result, private education was still in an ambiguous phase
at that time. Although there were some private education policy documents, they
could not provide systematic guidance to private education, let alone those policy
documents could play a guiding role.
5.3.1.2 Private Education Began to Get Public Financial Assistance
Chinese government has incentive the development of private education since

1992. The report of the 14th National Congress of the Party in 1992 clearly stated
that, “we should broad the channels and encourage various forms of social
fundraising to run private schools, so as to improve the public education.” It is the
hallmark of the new phase of private education. There was a 16 characters’
guideline for the development of private education, which was “actively encourage
and support private education, guide private education properly and strengthen
private education’s management” In English.
With the promulgation of the Regulations on the Operation of Educational
Institutions with Social Resources, the development of private education has
reached a climax on July 31,1997. The regulations held that “[t]he related
departments of the government at or above the county level shall provide support to
the school-running with social resources in accordance with relevant laws and
regulations.” It was the first time that the state explained private education policies
and guidelines in a clear and specific manner systematically and comprehensively.
It involved the nature, setting of standards, teaching management and financial
management, support policies and many other aspects of private education. The
promulgation of the Regulations on the Operation of Educational Institutions with

Social Resources provided a legal basis for the healthy development of private
education. The regulation emphasized to protect private education’s rights and
interests. It was a significant step in accelerating the development of Chinese pri-
vate education in China.
In addition, the government also issued some laws regarding to the financial
assistance for private education. In 2002, the People’s Republic of China Private
Education Promotion Law clarified that “[t]he governments at or above the county
level may establish special funds to support the development of private schools,
praising and rewarding social groups and individuals who have made outstanding
contributions to private education.” Likewise, China issued the Regulations on the
Implementation of the Private Education Promotion Law in 2004, which made the
funding process more clear with provisions like “[t]he governments at or above the
county level may establish special funds for the development of private education
according to the specific conditions of the administrative region.
Special funds for the development of private education shall be managed by the
financial departments who are responsible for the management, and shall be
reported by the administrative departments for education or the administrative
departments for social security to the Ministry of Finance for approval before use.”
Overall, during 1992–2009, Chinese government paid closer attention to private
education. However, while the relevant policies merely stipulated that private
education should get financial assistance from the public finance and the corre-
sponding sponsors, it did not illustrate what aspects of private education should get
subsidy. The policies and regulations were still incomplete. At this point, special
financial assistance is private education’s main funding form. Private education’s
funding form depends on the single pattern, and lacks of flexibility.
5.3.1.3 More Flexible and Diversified Forms of Public Financial

Assistance for Private Education
Since 2010, with the progress of society and the rapid development of private
education, the relevant policies and regulations have been continuously refined. In
addition, the focus of government subsidies began to turn from private education’s
macro level to the micro level of teachers’ compensation and education manage-
ment in private education providers.
At present, Chinese central and local governments formulated relevant policies
to subsidize private schools. For example, the Education Law, People’s
Republic of China Private Education Promotion Law and the Regulations on the
Implementation of the Private Education Promotion Law clearly stipulate that
private education should be included in national economic and social development
strategies, and education funds should allocate to private schools.
At the local level, Shenzhen, Ningbo, Shanghai and some other cities have
introduced specific implementation measures to support private schools, and
established the necessary policy basis for the development of private schools. For
example, Shenzhen Education Bureau and Finance Commission of Shenzhen

Municipality jointly promulgated three new policies in 2012, they are Private
Schools Compulsory Education Degree Subsidy Scheme of Shenzhen Municipality,
Special Fund Award and Subsidy Project Implementation Rules for Private
Education Development in Shenzhen, and Trial Measures of Allowance for Private
Primary and Secondary Teachers. Those policies supported the development of
private schools in Shenzhen by benefiting students, teachers and education provi-
ders. After the implementation of the above policies, more than 50,000 students
who study in public school before attended private schools. The number of private
school’s teachers increased by 14,000, and the number of private schools has
reached nearly to 160 private in Shenzhen.
In addition, the private schools’ funding spruces are becoming much clearer and
more diversified. For example, Nanchang issued a document stipulating that public
schools can participate in the operation of private schools organized by social capital
according to law, public schools also can send management teams and teachers to
help private schools in 2016. Additionally, in terms of classified management for
for-profit and non-profit private schools. It is stipulated that the government should
support private education by providing government subsidies, purchasing services,
tax relief and other means. Those measures can attract social resources through
multiple channels and expand the private school’s funding sources, thus, private
schools can get all-round support. At present, as for the government macro man-
agement, extensive social source participation, and the autonomy of school-running,
Chinese private school’s development become more and more sustainable.
The main provisions of financial support for private schools at this stage can be
seen in Table 5.2.
5.3.2 Main Forms of Public Financial Assistance to Private

Education in China Currently
The forms of public financial assistance to private schools by the government are
different from each other according to different standards. They can divide into direct
and indirect forms based on the fund source. Direct financial assistance refers to the
government subsidizes private schools through appropriating funds directly or give
certain concessions to private schools. For instance, providing financial support through
project funding, supplying necessary teaching equipment to education providers free or
at a moderate cost, appropriating start-up fees to schools and giving a certain proportion
of financial incentives according to the total investment of education providers (Yang
2010). All of these are conducive to the direct settlement of funding shortages faced by
private schools. Indirect financial assistance means that the government promulgates
corresponding subsidy policies to support the development of private education,
including tax incentives, reduction and exemption of facilities’ construction costs,
reduction and exemption of land acquisition fees, providing student loans, improving
the social welfare provisions for teachers and so on.
Table 5.2 Chinese private education’s public financial assistant policies
120
Laws and Regulations Time of Relevant Provisions

Promulgation
Outline of the National Medium- and Long-Term Program for Education 2010 Policies concerning private education fiscal support should improve.
Reform and Development (2010–2020) Governments at and above the county level where conditions permit shall
set up special funds to private schools. The central government shall
reward organizations, education providers and individuals’ meritorious
contributions to private education
Opinions of the Ministry of Education on Encouraging and Guiding 2012 We shall implement reasonable compensation for private school’s
Private Capital into Education to Promote the Healthy Development of teachers; private schools which established by donations, and of which
Private Education the founders do not require return on investment shall enjoy equal tax
policies with public schools. We shall subsidize private schools to
improve school management, strengthen the construction of the faculty
team, and establish schools and public school high-quality educational
resources sharing mechanisms
Opinions of the State Council on Encouraging the Operation of Schools 2016 The state actively encourages and strongly supports the operation of
with Social Resources to Promote the Healthy Development of Private nonprofit private schools with social resources. Governments at all levels
Education (The State Council of the People’s Republic of China, 2016) shall support non-profit private schools in the aspects of government
subsidies, government purchase services, fund incentives, donation
incentives, land appropriation and tax reduction and exemption.
Governments at all levels can support for-profit private schools according
to the needs of economic and social development and the needs of public
services through government procurement services, tax incentives and
other means. We shall innovate the education investment and financing
mechanisms, attract social funds through various channels and expand
the funding sources to run private schools. We shall encourage financial
institutions to develop risk-controlled financial products which are
suitable for private schools, explore future sources of operation income
and secure the intellectual property rights of private schools, provide
bank loans, trusts, financial leasing and other diversified financial
services. We shall encourage general public to donate to nonprofit private
schools
5 Chinese Private Education Public Financial Assistance
Source Bi (2015). Financial support for private higher education—status quo, obstacles and breakthroughs. Beijing: Economic Science Press
Financial assistance can divide into non-competitive and competitive regarding

appropriation mechanisms (Wang and Sun 2009). Non-competitive assistance
means the government provides financial support to private schools at a certain size
and with a high quality of operating an education provider in accordance with
relevant laws and regulations. By contrast, competitive assistance means the gov-
ernment allocates funds to private schools according to standards for obtaining
funds regardless of their nature, as long as they meet the relevant requirements.
In addition, financial assistance forms can also be divided into education pro-
vider, teacher and student assistance. Providing financial assistance for schools
means the government allocates funds directly to private schools, funds which will
be allocated by the schools according to their needs. Subsidizing teachers refers to
allocating financial funds to teacher’s professional development in private schools.
Such grants are generally stable, standardized and easily supervised, and they can
play a significant role in stabilizing the positions of teachers in private schools.
Subsidizing students means the government provides funds directly to students or
their parents, which mainly includes relief tuition and fees, student medical
insurance, accidental injury insurance and other financial needs.
To summarize, Chinese public financial assistance to private schools realized
currently through providing subsidies and rewards to private schools, purchasing
services from private schools, and providing private school’s student loans, tax
incentives, land incentives and other preferential policies.
The government may purchase public services from private education institu-
tions. That is the mechanism to achieve specific public service objectives through a
contractual relationship, which the government provides funds and private schools
provide contracted services. The government’s purchase of education services is a
main way to of government and private school cooperation, and form public-private
partnerships between the government and private schools.
In line with the principles of respecting the autonomy and maintaining the public
nature of private schools, the government should bear the fiscal responsibility for
private education through purchasing education services from private schools. This
could realize resource sharing and the complementary advantages of private schools.
The Decision of the CCCPC on Major Issues Concerning Comprehensively Deepening
the Reform points out the need for the government to fully and properly perform its
functions and strengthen its efforts to purchase public services. Ouhai District in
Wenzhou, Zhejiang province, issued a notice about the special funds for government
purchase of education services from private schools in 2014. The decision was made to
raise funds for the government to purchase services from the pilot program for private
education’s comprehensive reform.Ouhai district used special funds to purchase ser-
vices from the pilot private schools In 2013, By doing this, Ouhai district created
special funds to reward and subside private education (Bureau of Education in Ouhai
2014). Baoji Municipal People’s Government has also introduced policies to conduct
financial audits of private schools. They purchase social services with societal resources
and hire expert teams to evaluate private schools. In addition, they actively introduced
social forces into routine supervision to implement the services purchased from private
schools (The Government of Baoji 2015).
The national student loan policy belongs to the state’s financial assistance policy
for students. It is an important step for the state to deepen the education system
reform and promote education development by financial means. Providing state
educational loans to solve disadvantage students’ schooling problem is an impor-
tant way for the state to guarantee the education equity, and promote the devel-
opment of private education. The policy of student loans for private schools has not
only alleviated the economic burden of economic difficulties students to a certain
extent, but also partly solved the problem of funding shortages of private schools
and thus supported private schools running indirectly.
In 2014, the Ministry of Finance and the Ministry of Education formulated the
Measures on the Administration of Risk Compensation for Source-based Credit
Loans for Students, which clearly specifies the nature and applicable conditions of
source-based loans for students. In addition, Hunan Province and Hubei Province
have introduced relevant laws and regulations to specify clear requirements for
economic difficulties students who attend private schools to apply for state student
loans, establishing student loans discounts and risk compensation system.
5.3.3 Providing Tax Incentives and Land Concessions

to Private Schools Is also an Important Means
for the Government to Support Private Education
In recent years, China promulgated a number of legal documents. Those documents

include the People’s Republic of China Private Education Promotion Law;
Regulations on the Implementation of the People’s Republic of China on the
Private Education Promotion Law; Provisional Regulations of the People’s
Republic of China on Value Added Tax; Provisional Regulations of the People’s
Republic of China on Business Tax and Provisional Regulations of the People’s
Republic of China on Cultivated Land Occupation Tax. These laws and regulations
provide various types of tax incentives to private schools at all levels, so as to the
citizens and legal persons made donations to private schools. The laws and regu-
lations can encourage social forces to enter the private education field. In land
concessions, Chap. 7 of the People’s Republic of China Private Education
Promotion Law states that the governments at (or above) the county level may
support the private school through providing financial aid, leasing, or transferring of
the unused state-owned assets and other measures. For newly built or expanded
non-state schools, governments shall give them preference according to relevant
regulations concerning land for public utility and construction. The land used for
education shall not use for other purposes.
On this basis, Ningbo, Liaoning, Jiangxi, Shandong and Sichuan provinces have
formulated relevant policies to support private schools by allocating state-owned
land use rights, leasing or transferring idle state-owned assets of public schools and
other means. For example, the Finance Bureau, the State Administration of
Taxation and the Local Taxation Bureau in Shandong Province jointly issued the
Notice on Tax Policies to Support the Development of Modern Vocational Education,

emphasizing that private schools which do not demand return on investment or had
assets donated should enjoy the same tax preferential policies as public schools.
5.4 Problems and Suggested Solutions
In recent years, Chinese private schools develop sustainably, attract widespread

attention from all sectors of society. However, many problems emerge in the
process of development. The problems are as follows regarding to funding, few
sources and channels of funds, poor implementation of the supporting policy and
confused internal fund management of education providers.
Main problems.
5.4.1 Unsmooth Financing Channels and Few Sources

of Funds
Presently, Chinese private school’s funding obtaining channels are unsmooth,

education funds depend on tuition and fees to a large extent. The development
potential of private school is rather low. The most obvious reason is the social
discrimination against private schools. Speaking more generally, private schools
regarded as only the supplement to public schools. Private schools encounter lots of
problems, such as poor quality and chaotic internal management. As a result,
people’ willingness to invest private education is relatively low.
Second, the Education Law stipulates that “[n]o organization or individ-
ual may establish or run school or any other educational institutions for the purpose
of making profit.” However, investment in enterprises is for the purpose of making
profit, so private schools in the current system framework are unable to obtain capital
inflows from the capital market. In addition, presently there is still unclear about the
ownership of the private schools’ property rights, further blocking the entry of
investment funds into the field of private education. Chinese Guarantee Law states
that education providers shall not serve as guarantors, and education providers’
educational facilities shall not use for mortgage. Based on this, many financial
institutions regard private schools as the venture capital, private schools thus face
great difficulties in successfully receiving bank loans (Tao and Wang 2010).
In addition, China’s existing estate tax needs to be improved. There is no policy
to encourage asset donations, those policies are not conducive to the inflow of
social resources into the field of private schools. Coupled with insufficient support
from the government, private schools can only rely on the founders’ input, and
tuition and fees income. Private schools forge ahead through the challenges by
using income from school-running.
5.4.2 Public Financial Support Policy Lacks

of Effectiveness in Operation
Presently, China has promulgated a number of laws and regulations concerning

providing financial support to private schools. However, the laws and regulations
have many problems of unclear expressions and the lacking of effectiveness in
operation. Many provisions of the laws and regulations use vague expressions such
as “provide support,” “give rewards and commendations” and “support and sub-
sidize private schools.” As well, there are only authorized provisions on subsidizing
private education, without the forms, standards and other specific measures of
financial assistance of provisions. It results in uneven financial assistance efforts in
different regions while subsidizing private school is an act confined to the local
authority’s subjective will and whims.
The financial support policies’ implicit nature has affected the implementation
effectiveness. For example, although the Tax Policy Notice in Education stipulated
that there is tax preference for education, it does not explain the problems of
whether private schools should pay taxes. If private schools should pay taxes, what
kinds of tax should be paid and by which payment methods. In addition, the Private
Education Promotion Law and the Regulations on the Private Education Promotion
Implementation Law also failed to mention whether private schools can obtain
funding for investment to construct new educational buildings in private school’s
original land. Whether through development or replacement, it lacks concrete ways
for private schools to get a reasonable return. In this way, only providing private
schools with certain rights without specific implementation measures, or only
having remedial measures for the inconvenience to exercise these rights will affect
the implementation effectiveness of the policies negatively to a great extent, it will
and cause a deficiency of rights in turn (Qian et al. 2016).
The American policy scholar G. Alison once pointed out that in the process of
achieving policy objectives, only 10% relies on the functionality of the plan, while
the remaining 90% depends on effective implementation. Due to the unclear and
complex subsidizing process of subsidy policies, the operability of subsidy policies
for subsidizing private schools with public finance has greatly reduced, seriously
affecting the efficiency of government departments.
5.4.3 Financial Management Chaos in Private Schools
As for the internal management system, the founders of private schools with
“rolling development” in China usually assume the presidents or chairmen of the
boards for a long time. Family-run management is prevailing in private school’s
management, the private school’s founders train their children as the successors (Bi
2015). Some scholars have pointed out that the board members are “virtualized” in
some private schools. In other words, the board members have no real power in
5.4 Problems and Suggested Solutions 125
private school management, the decision-making rights these schools completely lie
with the chairmen of the board of investors or founders (Zhang 2006).
Apart from the above problems, because of the imperfections of the relevant
legal system and difficulties in the process of government regulation, the operation
of private schools is unconstrained to a large extent. Especially in funds manage-
ment, it is very common to find that the use and management of funds are irrational,
and the financial management system is in chaos. Many private schools’ operators
fail to have a correct understanding of the use, management and ownership of
schools’ assets. Some education providers arbitrarily draw and misappropriate
funds, which should be used for education. Some schools’ operators even put
schools’ operation funds into their own pockets, or even abscond with the money.
Because of poor financial supervision, private schools lack of funds restraint
measures, the cases of the legitimate rights and interests of education providers
being abused spring up all the time (Sun 2003).
5.4.4 Potential Solutions
In view of the problems existing in private education funding, the situation can
improve by making adjustments in the following aspects.
5.4.4.1 Having a Correct Understanding of Private Education

and Adjusting the Fund Source Structure
For the understanding of private schools, we must get rid of the “supplementary
theory,” the “expedient theory,” the “marginal theory” and other erroneous con-
cepts. It’s important to break the traditional idea of “emphasizing on public schools
while ignoring private schools.” We should have a comprehensive understanding of
private education, and gradually recognize that private education are an indis-
pensable part of Chinese education system. Public and private education have
coexisted for a long time, which is the premise of achieving sustainable develop-
ment of private education.
In addition, we must actively expand private schools’ financing channels. As
well, the government should not only provide special support to private schools but
also subsidize private schools by providing subsidies based on expendi-
ture per student, teachers’ supplementary pension insurance, reducing and
exempting private school’s rent. In terms of attracting social resources, the gov-
ernment should encourage enterprises, citizens and other social organizations to
donate private education, and provide tax relief for donors. Also, private schools
should, by establishing alumni association, special fundraising organizations or
foundations and other forms of fundraising, expand channels of social donations
and attract social and personal donations to the largest extent. In addition, the
government should also formulate special policies to allow private schools to use
their properties as mortgage, or put their intellectual property and tuition fees as
pledge to apply for bank loan. It can encourage the flow of bank loans into private
education in turn.
5.4.4.2 Refining Policies and Ensuring Policy Implementation
Policymakers should clarify the purpose of subsidizing private schools, refine the
policies and regulations and improve the operability and transparency of the poli-
cies to avoid the policy of ambiguity caused by subjective factors in the process of
capital allocation. Minimizing the cost of policy implementation and simplifying
the subsidizing process should be the policy priorities. Meanwhile, subsidizing
private schools should adjust from the authoritative standard to the mandatory
standard in legislation. Besides, clarifying local governments’ methods and stan-
dards of private schools’ financial assistance will also need to make sure that the
related policies and regulations can implement by local governments.
For example, adopting a classification management system between for-profit
and non-profit private schools, and prioritizing the financial assistance to non-profit
private schools, subsidizing non-profit private schools more than for-profit private
schools. In addition, while providing financial assistance for private schools, all
regions should optimize and reorganize their forms of assistance, take mutual
advantage, build comprehensive, optimal public financial assistance modes to meet
Chinese private schools’ development needs (Wang and Sun 2009). For example,
funding allocation for schools and students should base on competitive principle.
For teachers, however, financial assistance should mainly be on a non-competitive
basis. By doing that, it can not only promote healthy competition among private
schools and improve the quality of private education, but also maintain the stability
of the teaching faculty, so as to ensure the smooth and efficient operation of private
schools.
5.4.4.3 Regulating the Internal Management of Private Schools

and Strengthening Private School Supervision and Evaluation
The obstacles in the financing of private school closely related to the operational
problems. In order to standardize the management of private schools, we must
firstly clarify the ownership of property rights of private schools and delineate the
boundary between the founders’ start-up assets and the accumulated assets. In
addition, we must improve the private school’s internal management and affirm the
legal status of the school board. We should establish a systematic and standardized
fund management system to ensure the reasonable and standardized use of funds,
improve private schools’ internal financial management system, establish a strict
accounting system and strengthen internal financial audit supervision to avoid the
problems such as financial chaos, asset security etc.
5.4 Problems and Suggested Solutions 127
Finally, the government should formulate and improve the special policies for
the financial management and the supervision of private schools. As well, the
government should make specific provisions regarding the accounting system,
financial system, asset system and supervision system of private schools.
Additionally, the government should clarify the responsibilities of relevant
departments in financial supervision of private schools and establish a supervision
mechanism focusing on cooperation among various departments. The government
should also assess the financial conditions of private schools on a regular basis to
detect problems timely. Beyond that, the government should put forward targeted
solutions and form a transparent, standardized and efficient public financial assis-
tance management system to ensure financial resources are used to the maximum
benefit.
References
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breakthroughs. Economic Science Press, Beijing
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services purchased by the government in 2014. http://www.ouhai.gov.cn/art/2014/11/25/art_
2228_195351.html. Accessed 20 Nov 2016
Fan Y (2009) On the theory of public goods in financial expenditure. J Sichuan Econ Manage Inst
4:26
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201707/t20170725_1516453.html. Accessed 2 Dec 2017
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China. Educ Rev 1:64
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providers. Northeast Normal University, Changchun
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276/291/386/262358.htm. Accessed 20 Nov 2016
The State Council of the People’s Republic of China (2010) Outline of the National Medium- and
Long-Term Plan for Education Reform and Development (2010–20). Retrieved from http://
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on Encouraging Social Forces to Start Education and Promote the Healthy Development of
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Accessed 18 Jan 2017
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Private Educ Res 3(6):52–55
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29613514.html. Accessed 20 Nov 2017
Yang DZ (2010) Financial management and monitoring of private education providers. Human
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University Press, Beijing
Chapter 6
Governance System of Private Schools
School management is a dynamic system; it is enriching and renewing in practice

constantly. It is essential to run schools lawfully, manage schools independently,
supervise schools democratically, and participate in school affairs socially, to set up
new relationship between government, private schools, society, and markets. From
the perspective of educational management structure, improving the management
system of private schools involves both the external and internal management
structures. Among them, the external management structure mainly involves the
mutual restriction and contact between government, schools, and society. While the
internal management structure covers all levels and all aspects of school internal
management, which not only relates to teachers, students, and other stakeholders
but also involves the relationships between the political, administrative, and aca-
demic powers within the school. Simultaneously, the operational process of deci-
sion mechanism, administrative agencies, academic institutions, and supervision
agencies are also involved. This chapter intends to explore how to improve the
management system of the non-profit and for-profit private schools, how to perfect
the construction of the external and internal management system. Moreover, this
chapter focuses on solving the two important issues concerning how to improve
management system of non-profit and for-profit private schools by means of
classified management measures.
6.1 The Related Policies and the Implementation

Effectiveness
6.1.1 Regulating Running Private Schools in Conformity

with Legal Provisions
On the one hand, running schools lawfully refers to the government guides and
administrates private schools in conformity with legal provisions. On the other

130 6 Governance System of Private Schools
hand, it refers to private schools themselves formulate the school regulations and
rules, as well as further build up a certain model of legal management system,
which guarantees there are related laws which must be implemented according to
the national laws and regulations. Since the reform and opening-up in 1978, which
the private education first came into being, private education has run over 30 years
in China. With the rapid development of private education, the related legislation
and law enforcement have made great achievements.
1. Establishing the legal status of private schools. Private education establishes the
legal system following the school-running practice gradually. The Ministry of
Education issued A Number of Temporary Provisions on Running Schools by
Non-Government Sectors in 1987, which sent private education into the orbit of
legal operation. The State Council promulgated Provisions on Running Schools
by Non-Government Sectors in 1997, which standardized the private education
significantly. Private Education Promotion Law of the People’s Republic of
China (hereinafter refers to Private Education Promotion Law) was formally
implemented in 2003. Implementing Regulations on Private Education
Promotion Law of the People’s Republic of China (hereinafter refers to
Implementing Regulations) was issued in 2004, which played an important role
in promoting private education. Private Education Promotion Law stipulates that
private education is a public welfare as the indispensable part of the socialistic
educational development in China, which clarified the nature and status of
private education in accordance with the legislation. The newly revised Private
Education Promotion Law in 2016 promulgated a series of supporting docu-
ments, and private education shares the same goals with the national education
development according to this law. Thus, a favorable environment for the
healthy development of private education comes into being gradually, which
offers fair, impartial, and transparent administration and school running.
The relevant laws of China have also clearly stipulated that the private colleges
and universities enjoy the equality in legal status with the public ones. Private
Education Promotion Law stipulates private schools and public schools have the
same legal status. The faculties in private schools enjoy the equal rights to those
of public schools in respect of professional training, appointments of positions,
seniority calculations, rewards and awards, as well as social activities, etc.
Graduates in private schools enjoy the same rights as those from public schools
in respect of further education, employment, social benefits and outstanding staff
appraisal, etc. As a result, teachers and students of private schools are supposed
to enjoy the same rights as those of public schools. These provisions of Private
Education Promotion Law have legally come up with the resolutions to the
equal national treatment of private education.
2. Guaranteeing the legal rights of private schools. Because private education in
China has been a substitute for public education for a long time, the rights and
interests of private schools, such as their status, identities, and rights of teachers
and students, as well as the enrollment qualifications, cannot be recognized and
6.1 The Related Policies and the Implementation Effectiveness 131
respected in the society. Therefore, private schools have encountered great

obstacles in school running, which seriously hindered the sustainable develop-
ment. In order to solve these historic problems, Private Education Promotion
Law has explicitly stipulated that the state guarantee the autonomy of private
schools in the fifth provision. Implementing Regulations has further stipulated
that private colleges and universities have the following rights: such as setting
up majors and the corresponding courses, self-determining the students’
enrollment, standards, and methods. Private colleges and universities enjoy the
same enrollment rights as public ones, which shows that the state respects the
autonomy of private colleges and universities. Meanwhile, the 22nd provision of
Implementing Regulations has also standardized the ways to manage private
schools, which states private schools, offering higher education and secondary
vocational and technical education, are admitted to set up majors and corre-
sponding courses, choose the textbooks by themselves, etc. At the same time,
they are supposed to examine and keep on records in the approving authorities.
There is a transformation from the examination and approval system to the
record system through management, which helped to realize the decentralization
of school running. It not only protects the legitimate rights and interests of
private schools but also helps private education and makes full use of its
advantages. For example, private schools can educate students in a flexible and
efficient way according to the demand of labor market. The Proposal on
Encouraging and Guiding Private Capital into Education to Promote the Healthy
Development of Private Education and the Proposal on Encouraging Social
Forces in Running Schools to Promote the Healthy Development of Private
Education (referred to 30 Provisions of Private Education) put forward the
specific implementation measures to guarantee the autonomy of private schools.
3. Clarifying the legal obligations of private schools. It is conducive to the smooth
development of the private schools by adhering to the law, clearing all kinds of
legal relations, and standardizing various management behaviors. Private
Education Promotion Law, together with the other related laws and regulations,
covers almost all aspects of school management. Those laws and regulations
formulate guidelines for the organization and management of private schools.
The application materials and management procedures required when setting up
private schools should strictly abide by the state laws and regulations. The
clauses that the school sponsors, principals, and other administrators are sup-
posed to perform their duties should be clearly defined, which will effectively
guarantee the rights of the faculties and students by participating in the demo-
cratic management and supervision in private schools. The relevant Ministries
and Commissions issued the Specific Implementing Rules for Classified
Registration of Private Schools, the Specific Implementing Rules for the
Supervision and Management of For-Profit Private School and other doc-
uments in 2016, which further stipulate the corresponding obligations.
6.1.2 Implementing Autonomous Right of Private Schools
Autonomy is the right of survival and development for private colleges and uni-
versities. As the core of the construction of modern school system, autonomous right
mainly manifests the social progress. The Education Law of People’s Republic of
China promulgated and implemented in 1995 (hereinafter refers to The Education
Law) is the fundamental law in the field of education in China, which is the basic
principle of managing education according to the law. The Education Law stipulates
the following rights of schools. (1) To manage the school independently according to
the regulations. (2) To organize teaching and school activities. (3) To recruit students
or the other educatees. (4) To manage school rolls and to reward or punish the
educatee. (5) To issue the educated the corresponding academic certificates. (6) To
recruit teachers and staffs, and to reward or punish them. (7) To manage and use the
facilities and funds. (8) To reject any illegal interference with their education and
teaching activities from any organization or individual. (9) To have other rights in
related laws and regulations.
The Private Education Promotion Law implemented in 2003 is the principal law
for the state to support and standardize the private education. The fifth article
stipulates that private schools have the same legal status as public schools, and the
state guarantees the autonomy of private schools. Private Education Promotion
Law endows private schools with the following duties. (1) To set up the school
board of directors based on the regulations, which authorizes the educational
administrative departments at or above the county level. The board is responsible
for appointing or dismissing the school president. (2) To make up and modify the
school regulations. (3) To formulate the school development planning and to
approve the annual work plan. (4) To raise funds for private schools, reviewing
private schools’ budget and final accounts. (5) To make decisions on the number of
faculties and their salary standard. (6) To make decisions on division, merging and
termination, and other important issues.
As the first educational planning since twenty-first century, the 39th article of
National Education Plan clearly states that the relevant government should imple-
ment and expand the autonomy of running private schools. It also describes the
autonomies of three kinds of private schools, respectively, which are colleges or
universities, high schools, and secondary vocational schools. In accordance with
national laws and regulations, and strategic policies, colleges or universities possess
the following rights. (1) Teaching, research, developing new technologies, and
offering social services independently. (2) Setting up the corresponding depart-
ments of teaching, scientific research, and administration independently.
(3) Determining the internal distribution of incomes independently. (4) Managing
school personnel independently. (5) Managing and using school property and funds
independently. In addition, the autonomies of private high schools and secondary
vocational schools should expand in respect of the mode of school running, edu-
cational methodologies, resource allocation, personnel management, cooperative
education and community service, etc. The 43rd article of National Education Plan
further states that government will support private education energetically. It should
put into practice that private schools together with their students and faculties enjoy
the same legal status as public ones according to the law. Government guarantees
private schools’ autonomies of running private schools. The 10th and 11th articles
of Proposals on Implementation have, respectively, elaborated how to implement
the autonomies of school running and students recruiting in private schools. The 30
Provisions of Private Education made a series of clear regulations on the autonomy
of private schools.
The relevant laws and regulations of the state have made clear provisions for
ensuring the autonomy of private schools, which provides a basis for the imple-
mentation of the autonomy of private schools, and lays a foundation for practice. At
the same time, many local administrative departments have explored a number of
innovative practices worthy of promotion.
1. The price control is gradually liberalizing and the pricing authority is expanding.
Because more and more people are calling on relaxing the price control of
private schools, the price standards are largely determined by private schools
themselves permitted by the policies of provincial government. (1) For the
private schools offering academic education or nonacademic education, such as
private kindergartens, private secondary vocational schools, private technical
schools, private colleges and universities, etc., the price standards should keep
on records in the local relevant government. For instance, it stipulates that the
academic education, offered by private secondary vocational schools, private
technical schools, and private colleges and universities, be entitled to set up
price standards independently based on the local market, the school conditions,
and the reasonable cost of professional training in Guangdong province. After
keeping records in education department or human resources and social security
department, and competent pricing department, private schools can practice their
own price standards.1 (2) Private schools will manage, respectively, depending
on what kind of legal person they have registered, or what kind of school they
are running. For instance, in Zhejiang Province, the administrative educational
departments are implementing the corresponding policies, stipulating that the
price administrative departments at all levels should set up the benchmark prices
and floating ranges based on the development of schools when they check and
ratify the tuition fees and accommodation costs of non-profit private schools.
Whereas the price standards of private schools should in accordance with the
economic conditions.2 (3) The eligible private schools have right to set up
tuition standards or had a certain proportion of floating within the range of
government guiding price. In Fujian province, private colleges or universities
1
General Office of Guangdong Provincial People’s Government: Proposals on Promoting
Regulatory and Characteristic Development of Private Education (2013).
2
Zhejiang Provincial People’s Government: Proposals on Promoting the Healthy Development of
Private Education (2013).
who complete the personnel training evaluation or teaching evaluation are

entitled to set up the tuition standard of 20% of their registered majors presently
based on the standard tuition approved by the price department, with tuition
floating within 20%.20
2. The autonomy is supposed to expand in enrolment planning, enrolment areas,
and student-recruiting ways. Currently, the autonomies of private schools in
various areas are expanding to a certain extent in the mentioned aspects.
(1) Regarding the enrolment planning, private colleges or universities with
standard school-running behaviors and strict management allows making the
enrolment plan independently within the approved school scale, which has
become a common practice in various provinces and cities, especially with the
total decline in the student enrolment. Some provinces and cities have given
priority to those with strict standard and management, which shows the policy
support of the government. (2) Regarding the enrolment areas, the
cross-regional blockade and the enrolment limit nationwide have disappeared,
replaced by the cross-regional and cross-provincial student recruiting. In addi-
tion, private colleges or universities can recruit students at the same time as
public ones. (3) Regarding student-recruiting ways, private higher vocational
colleges are trying to enroll students independently by the school-level exami-
nations, and adopting the “trinity” (referring to the nation, the province, and the
school itself) recruitment reform, which reflects the expanding enrollment
autonomy of private schools.
3. Private colleges or universities are entitled to set majors by themselves to some
extent and carry out teaching activities independently. (1) The autonomy of
setting majors is liberalizing gradually. Taking the Education Department of
Zhejiang Province, for example. Compared to the similar public ones, private
colleges or universities decide a proportion of 20% major setting according to
the school scale. Private colleges or universities have rights to set majors except
for those controlled by the national and provincial departments independently,
on the principle of the discipline lists as well as the management measures
revised and set by the Ministry of Education. Additionally, the private schools
can determine the fields of teaching and academic research by themselves.3
(2) The teaching activities in private colleges or universities are independent.
Private schools themselves have right to choose teaching materials, make
teaching schedules, chose teaching methods, organize teaching procedures, and
assess student achievement. For example, Hubei province encourages private
colleges and universities to promote the reform of the credit system and explores
the teaching management system, which is suitable for the school development
and helpful with the innovative personnel training. The Xinjiang Uygur
3
Education Department of Zhejiang Province: Proposals on Further Expanding the Autonomy of
Private Schools (2012).
Autonomous Region stipulates that private schools offering elementary educa-

tion can teach independently and variously on the premise of completing the
curriculum required by the state or autonomous region.4
6.1.3 Perfecting the Internal Governance of Private Schools
National laws authorize the school-running autonomy; therefore, the extent of

power should follow the special legal stipulation. That is to say, the autonomy of a
school is neither termless nor absolute. The autonomy of running a school has its
necessary boundaries and restrictions, whose basic prerequisite is that the school
has perfect internal governance.5
Chapter 3 of Private Education Promotion Law defines the organization and
activities of private schools, including setting up the school council, the board of
directors, and other decision-making bodies, approaches to set up the school council
or the board of directors, the extent of authority, and guaranteeing that the staff
participate in the democratic management and supervision. Chapter 5 focuses on the
requirements of the school assets and financial management. Private schools should
build the financial, accounting, and asset management systems in accordance with
the relevant laws.
National Education Plan has put forward a clear request for improving the
corporate governance structure and implementing the private property rights of
private schools. It says, “perfecting corporate governance structure of private
schools.” Private schools set up school council or the board of directors according
to law, ensuring the principals can exercise their authorities within the framework
of law, and gradually promote the system of supervisors. It is important to give full
play to the party organizations’ initiative in private schools. Perfecting the super-
visor system of private colleges and universities. Guaranteeing that the faculties in
private schools have rights to participate in democratic management and supervi-
sion. Making it clear that there is a reasonable system for private schools to change
the business or exit the education market. Implementing the property rights of the
legal person in private schools conscientiously. Building up the financial,
accounting, and asset management systems of private schools. Any organization or
individual must not encroach on the school assets, draw out capital illegally or
embezzle the operating funds for education. It is important to establish a mechanism
of risk prevention and a system of information disclosure for private school
running.
4
The Ministry of Education: Proposals on Further Promoting the Development of Private
Education (2013).
5
Zhang Huiying: Autonomy of Running Primary & Secondary Schools and the Existing
Problems in China, published on Education and Management, pp. 31–33, Issue 4, 2009.
Proposals on Implementation purposely request to standardize the board of

directors (the school council) by the following regulations. (1) To standardize the
members of the board of directors (the school council), and prescribe a limit to the
ratio of school sponsors representatives. Setting up the relative avoidance system
for private schools’ principal management positions. (2) To perfect the rules of
debate and operational procedures of the board of directors. When the board of
directors holds a meeting to make key decisions, the school should make a memo
and let all the members sign, keeping a record for the future reference. Proposals on
Implementation clearly requests to focus on the internal management of private
schools. To perfect the principals and leadership selection, and the training
mechanism. To implement the tenure system and to guarantee the legal rights of
teaching and administration entitled to the principles and school authorities. To
conscientiously strengthen the work of Party building of private schools. Realizing
that the Party organizations cover all of the private colleges, giving full play to the
political core role of Party organizations in private schools or universities, per-
fecting the system of supervisors, and establishing the system of staff congress. To
allocate a sufficient number of counselors and head teachers in accordance with the
relevant regulations and actual work requirements. Establishing and improving
campus security management system. Arranging sufficient security forces and
improving the security prevention and control system to maintain the campus
security. The above provisions involve the key aspects of the internal management
of private school; the provisions are concise and clear.
The 19th, 20th, 21st, and 22nd articles of 30 Provisions of Private Education
have, respectively, reaffirmed to perfect the private schools’ governance system, to
improve the financial, accounting, and asset management systems, to standardize
the school-running behaviors, and to implement the responsibility system for the
school security, which clear defines the regulations and requirements in the new era.
1. To gradually improve the mechanism of school governance. At present, the
school governance mechanisms in private schools are as follows. (1) President
(dean) responsibility system guided by the board of directors (the school
council). It accounts for nearly 67% in all the private schools according to the
survey on private colleges and private primary and secondary schools conducted
by the Ministry of Education, which currently is the leading school governance
mechanism.6 (2) Implementing principal accountability system. The principal
accountability system often applies when the investor is the same one as the
president in private schools. (3) Principal accountability system guided by the
School Council and based on the Staff Congress. Private schools mainly initiate
by a group of people, and there are no actual investors.
2. To set up a more streamlined and efficient internal mechanism. Private colleges
and universities must be market-oriented, objectively requiring a flexible
organizational structure that is adaptive to the market variations. Regarding the
6
Ma and Du (2010).
management, we should stress on weakening the school hierarchy, setting

institutions and posts as required, and focus on the effective links between
institutions.7 (1) To give prominence to the principle of setting posts as required.
It is a rare phenomenon to set posts by person and overstaff in private schools,
which often sets post according to the school development. When the
post-setting is not reasonable, private schools will merge it with the other one.
(2) To give prominence to efficiency. Administrative departments and
post-setting in private schools emphasize the Triple Effect, namely, profits,
efficiency, and results.
3. To set up a more flexible personnel mechanism. (1) Private schools implement
the transparent personnel recruitment system and mutual selection system.
Schools in recruitment demand often set recruitment requirements by the posts
in order to choose mutually with the applicants, voluntarily, and autonomously.
(2) Teachers’ salary should in accordance with one’s ability and actual
achievement, which fully demonstrates the principle of “more pay for more
work.” (3) Private schools have built a mobility management mechanism of the
staff (the personnel system and distribution system), which really arouse the
enthusiasm of the staff, and bring their wisdom and talents into full play. There
is no “big-pot” (big-pot means egalitarianism in Chinese) distribution system,
“iron rice bowl,” and “iron post” (means a secure job for lifelong time in private
schools) anymore. The administrative department for education is gradually
adopting the personnel and distribution systems of private schools as reference
to promote the reform in public schools.
4. Independent properties using and managing rights. If private schools were able
to obtain resources from the society, they would less depend on the government
resources, which will enhance their autonomy of resource allocation. Notice on
Strengthening Standardized Management to Promote the Healthy Development
of Private Higher Education, issued by the State Council in 2006, proposed to
implement the corporate property rights. Investors are supposed to provide
sufficient financial contribution on time, which must verify by the registered
accountant, and transferred to the school account. Any organization or indi-
vidual must not encroach on the school assets, draw out capital illegally or
embezzle the operating funds. In 2007, the Ministry of Education issued Decree
No. 25, namely, Provisions on the Management of Running Private Colleges or
Universities clearly defined the time for the asset transfer that the investors must
transfer the assets to the private colleges or universities within a year from the
date of approval. If the asset has not transferred to the school before the Decree,
the relevant work should have done within a year. During the period, the
sponsor has a joint liability for the school debt. Implementing private property
rights is gradually covering from private colleges to all the private schools, with
the detailed regulations issued by the corresponding departments in various
areas, providing stipulations on the issues of asset verification, tax, and fee.
7
Wang (2012b).
6.1.4 Promoting the Social Participation in Private Schools
As one of the main governing bodies of the modern school system, society has a
great influence on the construction of modern school system. Private schools have
the advantage to contact with society. Private schools can respond flexibly by
promoting social participation in educational services and the demand of other
users.
National Education Plan proposed to promote social cooperation, explore the
approach to set up the College Council or the Board of Directors, and establish a
long-term mechanism of social support and supervision for the school development.
Besides, National Education Plan advocates exploring the co-construction mode of
college-industry and college-enterprise. It also promotes the resource-sharing mode
of college-research institute as well as college-social community in order to create
an effective coordination and cooperation mechanism. Beyond these, the important
proposition in National Education Plan including the following contents: improving
the professional evaluation, encouraging the specialized agencies and social inter-
mediary agencies to assess the disciplines, specialties, curriculum standards and
teaching qualities, etc. Establishing the scientific and standardized system,
exploring the approach to cooperate with the international high-level education
evaluation institutions and finally create a school evaluation mode with Chinese
characteristics. Concerning the management of primary and secondary schools.
Proposing to set up the Parents’ Committee which will instruct the community and
the relevant experts to participate in the school management and supervision. The
enterprises should play an important role in the development of secondary voca-
tional schools, which will help to create the cooperative mechanisms of
school-industry and school-enterprise. National Education Plan emphasizes that the
social participation in school management and supervision should evolve gradually.
Proposals on Implementation require improving the management and service of
private education clearly. An information platform of private education service and
management is establishing in various regions gradually, which not only meets the
demand of the public and the school sponsors but also helps to improve government
management and service. The relative departments are responsible for pushing the
in formalization construction of private education, meanwhile, working on ana-
lyzing and publishing the statistical data, which the private capitals are invested in
private education and social training. It is important to publicize the advanced
models of private education, reform achievements, and development achievements.
Likewise, coordinating relevant departments to formulate policies and measures to
further promote the development of private education, and creating a good envi-
ronment for the whole society to support the development of private education
actively. It is also important to guide the private educational intermediary’s orga-
nizations in order to maintain sustainable development and strengthen the con-
struction of research institutions concerning private education.
Provisions on the Management of Running Private Colleges or Universities

issued by the Ministry of Education states clearly that the education administrative
departments, together with the civil affairs departments, would focus on profes-
sionally guiding, supervising, and managing the industry associations of higher
education. Making sure that the industry associations are supposed to provide
service fully, reflecting the demands and self-regulate the industry in the healthy
development of private higher education. The education administrative depart-
ments, cooperating with the Medias, should work well on the propaganda of
guiding the healthy development of private higher education, creating an envi-
ronment conducive to the healthy development of the private universities.
6.2 The Main Existing Problems
6.2.1 Lawless, Failure to Observe the Law and Lax

Enforcement Still Exist
In general, China has initially established a legal system of private schools after
more than 30 years’ legal construction. The legal system originates from the
Constitution of the People’s Republic of China, puts the Law of the People’s
Republic of China on Education as fundamental law, and regards the Private
Education Promotion Law and the Higher Education Law as the main parts.
Meanwhile, the Regulations of the People’s Republic of China on Academic
Degrees, Law of the People’s Republic of China on Teachers and Vocational
Education Law are the branches of private schools’ legal system. The branches also
include the administrative regulations, provisions, and the corresponding laws on
private education issued by the State Council, the Ministry of Education and the
local governments, which lay a solid foundation for running private school and
managing private education legally. The private education in China has made new
development since the implementation of the Private Education Promotion Law
and the Implementing Regulations. Overall, the laws and regulations concerning
private education in our country start relatively late compared with other countries,
the legal system of private education is incomplete, and some problems still exist:
1. Lawless. Although there are many laws of private education, there are a few
feasible provisions. Administration according to the law is the core of managing
private school by law on condition that there are complete and feasible laws.
However, some legal provisions are lack of supporting policies and detailed
explanations, and some are paradoxical, which will hit bottlenecks when put
those legal provisions into practice. There are no specific regulations to support
the classified management. The new Private Education Promotion Law clearly
stipulates that the relative departments will manage private schools,
respectively, according to whether the school is for-profit or non-profit.

However, there are no detailed implementation regulations of classified man-
agement and the core problems, such as the legal person attribute, property
ownership and reasonable benefits, government support system and the pro-
tection of the rights and interests of teachers, etc., in the real practice. It is
imperative to make and implement the corresponding policies promptly, which
will promote the development of non-profit and profit private schools.
2. Failure to observe the law. Chinese government has not yet completely managed
the private education according to the law until now. First, the government does
not put emphasis on the major issues, such as making plans about the scale,
direction, and funding of private education development. In addition, the rele-
vant information is absent. Many private schools fail to get the policies con-
sistent with the public schools, which hinders them from seizing the
micro-situation. Second, the corresponding administrative departments’ func-
tion offside, the functional transformation lags behind, streamlining adminis-
tration, and delegating power are rare phenomenon, and the government
intrudes too far into private colleges with many barriers, which strangles private
colleges’ enthusiasm, and finally violates the school-running autonomy. Lastly,
there is a phenomenon of the malposition of the government functions. Some
local governments work on the transformation of public educational resources
by themselves, and partly or fully participate in the private school running,
which helps the transformed schools enjoy special policies and become one of
the sources of local government funding. The law enforcement disturbs school
running and evaluation is still a serious problem. There are illegal private
schools and non-standard school-running behavior. From the perspective of
private education itself, the problems such as false advertising, scrambling for
enrollment, poor management, financial difficulties, and unstable teachers,
lacking of teaching conditions, low quality, and unbalanced development are
still prominent problems, which will restrict the healthy development of private
education.
3. Lax enforcement. Duties are ambiguous among law enforcement departments
and authorities in China. Who is responsible for the law enforcement? How to
enforce the law are two unsolved problems in practice? For example, the
government, the education administrative department, and other relevant
departments, colleges, and universities are the subjects when enforcing the
higher education laws based on higher education law. However, those law
enforcement subjects’ legal status, rights, and duties are very vague. As the
educational administration system in China is in a transformation period, the
educational administration must break through the traditional mode of admin-
istrative management, and transform to the legalized management mode.
Therefore, the education administrative law enforcement mechanism is still in
the process of exploration and practice.
6.2 The Main Existing Problems 141
6.2.2 The Poor Implementation of the School-Running

Autonomy, and Remains Highly Divergent
School-running autonomy arouses the enthusiasm of running a school and stimu-

lates vitality of the mechanism of running private schools. With a rather flexible
mechanism, private schools have initiative and obtain a relatively free development
space in the completely educational system. Private schools show more advantages
in terms of characteristic development. The advantages are as follows. First, the
private school focuses on the educational philosophy and the principles of talent
cultivation, obeys the objective laws the growth of talents, and emphasizes the idea
of student-orientation and teacher-mainstay. Second, private school reforms
teaching methodologies and curriculum contents, emphatically cultivates students’
creativity and practical ability, and creates opportunities to develop students’ per-
sonality. Therefore, the diversified development structure is forming in private
schools gradually. However, the autonomy implementation still faces many prac-
tical problems.
1. The generality of policy-making. Although the autonomy of running private
schools was clearly defined in People’s Republic of China Education Law,
Higher Education Law, Private Education Promotion Law, and a number of
other related policies, the existing laws and regulations on the autonomy of
universities are limited to the institutional level and show an absence of perti-
nence and the dissimilarity. For example, in terms of colleges and universities
disciplines and majors setting, the relevant policies of the Ministry of Education
clearly stipulate that colleges and universities cannot set up the disciplines and
majors out of the professional catalogues; otherwise, it will conflict with the
corresponding provisions in Higher Education Law. Obviously, there are no
clear provisions and detailed rules for the autonomy implementation of private
schools.8
2. The limitation of the use of power. Currently, the management methods of
private schools’ sponsors restrict autonomy implementation. The independent
corporate governance structure and the reasonable check-and-balance mecha-
nism of the right have not yet been completely established. Because there is no
complete corporate governance structure with the characteristics of democratic
decision-making and effective supervision, many problems emerge. First, the
investors (sponsors) play a controlling role in school management. Second, the
obligations of the executive team, principals as the core authority, are not clear.
Third, there are no external and internal supervision mechanisms, the lack of
stakeholder’s participation in school management, etc. Fourth, the inability of
self-development and self-restrict keeps private schools from implementing their
autonomy as an independent legal entity. In terms of student’s enrollment
8
Huang (2004).
planning, the management system follows the mode of planned economic

system. Although the government has made some reforms, there is no sus-
tainable change. In terms of the right to set up the disciplines and majors, there
is strict limitation from the government, so the private schools hardly can set up
the urgently needed disciplines and majors. In terms of fees, private schools are
supposed to have the right of determining charging items and standards
according to their own situations, levels, and cost, considering the social needs
and affordability at the same time.
3. The imbalance of regional development is the special feature of the socialist
market economy, and it determines the imbalance of private education resource
allocation. The private education development in Zhejiang province and
Guangdong province reflects the imbalance. Provinces with rapid development
of private education often provide favorable policies for local private schools,
which guarantees the autonomy of private schools based on the demands and
requirements effectively. The local government is the source of the system
innovation. Therefore, different regions need to make local regulations, which
are suitable for region. The development of private schools ought to under the
premise of the basic spirit and principles of relevant laws.
4. The type and level of private schools vary. Chinese private education covers
preschool education, compulsory education, high school education, and
post-secondary education. However, relevant laws and regulations do not aim at
the differences, which will eventually lead to the unclear rights and powers and
weak pertinence in the law enforcement. For there are a number of studies and
practices on private school autonomy, the study which focuses on the autonomy
of private primary and secondary schools are relatively less, especially, less in
the basic education. Nevertheless, the existing studies pay much attention to
private higher education.
6.2.3 There Are Unclear Responsibilities and Rights

in the Internal Governance
Internal governance is crucial for the healthy development of private school. The
optimization of the internal governance structure of private schools has laid a solid
foundation for education innovation and management, which will help to construct
the modern school system. The gradually optimized internal governance structure
of private schools has strengthened their independence, and numbers of schools
have established the optimized system, which adapts to the social requirements,
such as the personnel management mechanism and competition mechanism;
therefore, private universities show their superiority in internal governance.
However, the social environment, foundation, and conditions of the establish-
ment of the private universities vary in China. Private school’s sponsors have
different opinions on their role in school running (donations or investment,
for-profit or non-profit, and for-return or non-return), so the present governance

mechanism is in chaos to some extent, the conflicts within the school authorities are
emerging, some of the outstanding problems are as follows.
1. The organizer (founder) often takes control of school management. The unclear
property rights of the legal person, together with the causing problems (such as
the attribution, distribution, reorganization, and restructuring of the property
rights), results in chaotic governance mechanism. In reality, because of the
blurred boundary between the investor’s ownership and the school property
right of legal person, it is easy for the organizer (founder) to misunderstand that
“the school is mine” and “everyone has to listen to me.” Because most of the
private school investors are schools’ legal person, and they cling to the earning
power, therefore, there is a misunderstanding on the distribution of profits that
the investors earn all the money hardly. The investor’s ownership and the
school’s ownership are different from each other; we emphasize the invertors’
ownership here. Just due to the investor’s strict control, it is hard for private
schools to integrate with the modern school system in terms of financial man-
agement and teaching management.
2. There is no standard decision-making system based on the board of directors
(the school council). First, it is hard for the private school to know the reasons
why the school establishes the board of directors, so the school organizer
(founder) controls the decision-making and school running all the time. Second,
because of the unreasonable number and structure of the board of directors, the
family-oriented governance structure is very common for private schools, such
as mom-and-pop shops, brother-and-brother shops, and father-and-son shops,
which often shows the features of intergeneration transfer that the son (daughter)
inherits the property from his (her) father (mother). Third, there are no sound
rules of the board meeting; the chair possesses the absolute power. The lacking
of scientific decision-making system decision and arrangement system in private
colleges results from the imperfect board system. When the board makes
decisions on the school issues, family interests are usually superior to other
factors. Although the decision may make sense in a short term, it lacks the
strategy and thought for sustainable development.9
3. The rights and responsibilities of the executive team (principal as the core) are
unclear and overlapped. Considering the school’s development, investors usu-
ally take the capital into account, while principals usually take the education and
teaching into account. Thus, the chairman and the principal (as the core of the
executive team) always dispute from each other due to their different consid-
erations. There are three typical cases: First, it is very rare for private schools’
principals to take a long-term office. Principals constantly come and go like
being on a merry-go-round. Some private colleges change their presidents once
a year, some even change several once a year, and the presidents usually have
no power or little power. Second, principals overstep their authorities and gain
9
Xu (2012).
the initiatives. For example, some chairmen ignore the management, so the
president controls the school. Third, the chairman and the principal always have
different ideas, leading to the constant conflicts and rigid relationship with each
other, which has a negative influence on school.
4. The internal and external supervision mechanisms are missing. First, there is no
sound supervisory board system in private colleges and universities, because
some schools have no supervisory board, the board’s responsibilities are
unclear, or the board just supervises the school as a subsidiary of the board of
directors. Second, the government’s supervision is missing. The educational
administrative department hires accounting firms to audit the private schools as
the intermediary organizations, actually, the work has not started. The civil
administrative department is mainly responsible for the annual inspection. Due
to there are tens of thousands of private schools or private non-enterprise
organizations, it is difficult for the registration authority who has a limited
number of managers to supervise private schools effectively by annual inspec-
tion. Third, the supervision of teachers, students, parents, and society is weak.
Parents supervise private schools by voting with their feet; most of the parents
reluctant to send their children to private schools. The supervision mainly
focuses on the educational quality rather than the schools’ property, the gov-
ernance structure and the internal management, etc. Owing to the insufficient
information, the actual supervision from parents and students is quite limited.
6.2.4 Insufficient Social Participation in School

Management
With the development of private education in China, private schools become more
and more independent and autonomous. Private schools have more opportunities to
connect with the society, so they can respond immediately and flexibly to the
education services and the needs of their customers, which helps to arouse the
enthusiasm of running private schools and form an active adaptive mechanism.
Thanks to this strong sense of social participation, private schools can take
responsibility for their own strategic choices, formulate long-term plans, and fulfill
their missions. However, the closed mode of running private schools has been a
problem for a long time in China. Although the closed mode has made some
breakthroughs with the reform and development of private education, the real
interaction between schools and communities (the society) is still limited.
1. The social forces have no initiatives in school management. Communities
together with the main bodies of the market lack enthusiasm in running school.
Citizens generally regard education as a matter of government and schools
rather than the matter of themselves. With the further development of market
economy and the increment of the available social resources in running private
schools, it is greatly valued to establish the institutional mechanism of inter-

action between schools and communities, and this is the requirement of edu-
cational democratization. In addition, it is a practical value to establish a modern
school system in a comprehensive way, such as establishing the diversified
mechanisms participated by parents, students, celebrities, enterprises and insti-
tutions, etc., so as to change the mode of running schools in respects of
investment, management, and development.
2. Social participation shows no significant effect. As social forces are developing
all the time, and they turn mature gradually, it will guarantee the complete
decentralization, the moderate competition, the limited market as well as the
normal realization of voluntary education as the public welfare. The develop-
ment history of private schools and public schools in Japan, the USA, and
Britain illustrates that community volunteers are engaged in school’s manage-
ment and development widely and deeply, including not only parents, students,
and community representatives of various parties but also the school council, the
board of directors, and other committee systems of various forms. When a
school’s interest closely combines with those of the community, it is quite hard
for any third party to intervene and change its social publicity. As far as this is
concerned, social participation is of the greatest value in ensuring and promoting
schools’ public nature.10 However, the overall social participation is still weak,
and the field of participating is narrow and lacks diversity, which directly affects
its main role.
3. The intermediary organizations are still in an embryonic stage. Educational
intermediary organizations play an important role in balancing interest conflicts
among all kinds of school stakeholders, optimizing the educational resources
allocation and safeguarding the legitimate rights and interests of school legal
persons and citizens by contacting the government with schools and society.
From the perspective of the existing policies, educational intermediary organi-
zations are mainly responsible for part of the management granted by the
government, rather than self-adjustment and self-development based on the
society. Regarding the current intermediary organization in China, there are still
numbers of problems. First, the intermediary organizations are not systematic
and perfect so that they cannot bear some separated and transferred functions by
the government. Second, some agency members are not private school’s rep-
resentatives, whose assessments on education is not scientific, authoritative, and
professional. Third, some agency members are the agents who are dispatched
from the government, and the public officials assume the leading position. In a
word, educational intermediary organizations in China are still in its infancy and
need to grow up systematically.
4. Strengthening the co-construction and cooperation between home and school. In
the Internet Plus era, the traditional schools’ educational function is gradually
weakening. By contrast, home-oriented learning and family education are
10
Xu (2005)
increasing. Thus, the construction of the modern school system must attach
great importance to family education, guarantee parents’ rights and stress their
roles in education. In addition, as the calling of personalized education is
growing louder, people appeal to have education with the characteristics of
minor-cycle and impromptu in a short term and at any time in modern society,
the appeals cannot totally fulfill by the traditional school education. In order to
provide coeducation by combining family education and school education
together, we should better make good use of the convenient of Internet. Some
scholars predict that the future education tends to be an effective combination of
the compulsory and standardized school education with the individualized and
liberalized family education.
6.3 Theoretical Basis and Practical Reference
6.3.1 The Theoretical Basis for the Construction

of Private School Governance System
6.3.1.1 Rent-Seeking Theory
Alan, a famous economist, first proposed the term “rent-seeking” in 1974. Its
original meaning is that the power center transfers the power unprincipled in order
to gain extra benefits. In general, rent-seeking means seeking opportunities to be
rent. However, rent-seeking differs from profit-seeking. Profit-seeking refers to
obtain benefits through market competition without damaging the interests of others
in the market economy, which eventually helps the market to develop in a healthy
way. While from the perspective of systematic environment, people compete to get
rent and maximize their own interests at the expense of damaging the interests of
others, the society or the state, which is obviously harmful to others and the
society.11 In developing countries, especially those in transition from the planned
economy to the market economy, the government has become the prey of interest
groups for rent-seeking because the administrative power is much stronger than the
market power; the administrative power even controls and interferes with the
market power. Social transition will provide a wide range of possibilities for rent
seekers to get personal gains by public power. Although the rent-seeking behaviors
conform to the principle of maximizing rent seeker’s own interests, the seeking
benefit is far less than the harm to others.
With the deepening reform of Chinese socialist market economy, the govern-
ment’s education monopoly become much weaker, especially with the emergence
of various kinds of private schools. The policy tends to encourage and support
11
Han and Qu (2014).
6.3 Theoretical Basis and Practical Reference 147
private capital investment in the education field, to vitalize education. However,

during the transition process from the traditional planned economy system to the
modern market economy, there is bound to have a period of the coexistence of old
and new systems. Thus, a policy difference has emerged in the forms of the
dual-pricing system, profit margin and tax margin, etc., which results in a huge
amount of rent and rent-seeking activities. At the same time, the current private
schools, especially private colleges and universities, are still in a loose organiza-
tional structure with bureaucratic administration, and the administrative power
coexists with the academic power. The overused administrative behavior together
with strict administrative division in internal governance is liable to cause the rents
seeking by administrative power to some extent, which makes it difficult to opti-
mize the internal governance structure of private schools.
6.3.1.2 The Separation of Ownership and Control
The separation of ownership, control, and beneficiary right bases on the economic
definition. When studying corporate governance structure in economics, the first
thing to mention is the separation of ownership and control right (or management
right), which is regarded as the important foundation and premise for building
corporate governance structure. Famous American scholars, Berle and Means, first
proposed the Separation of Ownership and Control in their classic book called
Modern Enterprises and Private Property. It refers to the board of directors who are
elected by the general meeting of shareholders instead of the corporate shareholders
should run and manage the company. The board of directors usually runs the
company, while the shareholders only have an indirect impact on the
decision-making and capital operation by voting.
There are two definitions of Ownership. One is the right of Residual Claim; it
claims on the enterprise income after deducting the payment of all fixed contract.
The other one is the right of Residual Control; it is the right of decision-making
without special provisions in the contract. The two definitions have no difference
for corporate enterprises because the above rights belong to the same person,
namely, the shareholders of the company. Therefore, the ownership and manage-
ment separate from each other only in the profitable corporate system. The rights of
residual claim and residual control are the same one, and they match with each
other. However, in non-profit organizations, ownership and management separate
from each other, so as to the residual claim and residual control. Professor Henry
Hanmansi, a famous economist, holds the opinion that non-profit organization has
no right of benefit distribution, and no one can intervene in the management and
residual income distribution. The rights of residual claim and residual control do not
match with each other in non-profit organizations. Therefore, the separation of
ownership and control in the corporate governance structure evolves the Separation
of Three Rights (residual claims, residual control, and management) in non-profit
organizations.
Regarding the management of modern private schools, we should first make the
rights and ownership clear. The separation of ownership and control in modern
enterprise management provides a better analytic idea to the similar issues. The
separation of ownership and management rights has become the trend of devel-
opment of the modern school system and achieved practical results in some schools,
which has improved the internal governance structure of the schools. However, the
incomplete separation of ownership and control is a fact that the modern private
school has to face in school management. Based on the separation of ownership and
control theory, we should try to explore an operation mechanism of school rights
suitable for for-profit and non-profit private schools, which will affect the sus-
tainability of the construction of private school system.
6.3.1.3 Transaction Cost Theory
Kos proposed the concept of Transaction Cost, of which the Division of Labor
becomes the core category of new institutional economics. Kos further pointed out
the transaction cost refers not only the costs in the market but also the internal
transaction costs of the enterprise itself, such as administrative fees, supervision
fees and cost of transferring administrative orders, etc. Thus, when the profit
continues increasing with the expansion of enterprise, the transaction cost will
increase accordingly. When it is equivalent to the transaction cost in the market, the
enterprise will no longer expand and tend to be relatively stable status. The social
organization, as a basic unit involved in market transaction in the division of labor,
plays an important role in organizing a group of elements into a unit to participate in
market exchange to reduce information asymmetry, and ultimately reduces the
transaction costs. Therefore, transaction cost is actually a system cost derived from
the division of labor.
After more than 30 years’ development, the number of private schools in China
is increasing all the time, and it brings to the expansion of private schools. Based on
the transaction cost theory, private schools’ internal transaction costs are also rising
with the school expansion. When they are equal to those on the market, the school
will stop expanding. Private schools as social organizations, ultimately aim to
reduce the cost during the interaction. Hence, it is urgent to figure out a more
scientific and reasonable solution based on the top-level design, helping for-profit
and non-profit schools to find a standpoint in the construction of modern school
system.
6.3.1.4 Principal–Agent Relationships Theory
The principal–agent relationships theory is a key topic in organizational economics,

which bears a wide range of meaning. As long as one party’s actions affect another
party, there is a principal–agent relationship. Agencies emerge mainly due to the
information asymmetry. The party who holds personal information is called an
agent, while the party who holds no information is called a client. Based on the
principal–agent framework, the client entrusts the agent to conduct a job. However,
for the client cannot obtain all the private information, even cannot to directly
observe the agent’s actions, the agents may damage the client’s benefit in the proxy
process. The corporate governance structure is mainly supposed to lower the cost of
agency and set up a series of checks and balances to regulate the agent’s behavior. It
aims to get the maximum benefit at the lowest cost. The application of the prin-
cipal–agent theory mainly lies in how to motivate the agent to work hard, and do
not violate the interests of the principal of the shareholders and creditors. This
theory is suitable in the governance structure of private non-enterprise
organizations.
There are sorts of principal–agent relationships in private schools. There are two
most obvious relationships. One is the principal–agent relationship between the
school owner and the actual manager, namely, the principal’s investor and the
agent’s principal. The other refers to school inner principal–agent relationship,
namely, the principal–agent relationship between the principal, other managers, and
the teachers. Additionally, there appears the third principal–agent relationship
between the society, students, and schools, because education is a public service,
and parents and students’ expectation is increasing.
Taking private universities as an example, the board of directors is the main
representative of investors, which not only includes school directors, such as
principals, teachers, etc., but also involves outside individuals, such as the gov-
ernment. The board of directors in private universities is studying the issues on how
to clarify the relationships between the stakeholders, how to define their obligations
and responsibilities, and how to coordinate their contradictions when all the
stakeholders participate in the school governance. Those issues directly affect
school’s internal governance and the external reputation, and eventually have an
impact on the development of modern school system.
6.3.1.5 The Theory of Corporate Governance
Corporate Governance derives from the research of corporate organizations, such as

profitable companies and enterprises in economics, so it is called Corporate
Governance. Broadly speaking, corporate governance is regarded as a set of
institutional arrangement and contract arrangement. As the famous economist Lin
Yifu said, the corporate governance structure refers to a complete set of arrange-
ments for the owners to supervise and control the management and performance of
an enterprise. He pointed out that the corporate governance structure, which people
usually focus on, actually refers to the direct control or internal governance
structure of a company, but for a company, it is more important to achieve indirect
control through competitive market (i.e., external governance). It can be seen that
the corporate governance structure is to maximize the value of the organization
under certain conditions, to coordinate the relationship between many stakeholders
inside and outside the organization.
Although the theory of Corporate Governance is initially used to study

non-profit organization, the research ideas and methods also are suitable for
non-profit or quasi-for-profit private universities. The issues that corporate gover-
nance concerns are also the unavoidable issues for private universities. As a
company could not operate without the government’s supervision and legal
restriction, private universities also closely interrelate to the government regulations
and the corresponding laws, which reflects the influence of external governance
environment on private universities.
In order to explore the internal and external governance system of private
schools from the perspective of classification, we can fully draw ideas and methods
from the theory of Corporate Governance. Under the external governance envi-
ronment where the socialist market economy is booming and the market is playing
an increasingly important role in the allocation of resources, private schools must
also pay attention to some practical problems, which often appears in corporate
governance. Private schools and enterprises are the same in terms of staff compo-
sition, which consists of investors, managers, and faculties. However, the organi-
zation must take priority to provide students and families with public education
services, and then motivate all the stakeholders to participate in the system con-
struction of private schools.
The Pilot Experience of Private Schools’ Management System Construction
The Premier of the State Council convened the executive meeting on the
January, 7th, 2015, clarifying that the administrative department will manage pri-
vate schools and allow setting up for-profit private schools. National Education
Plan proposes to explore the ways to manage for-profit and non-profit private
schools, respectively, and launches a pilot project on it. In January 2011,
the General Office of the State Council issued Notice on the Pilot Reform of
National Education System. The notice put Shanghai, Zhejiang Province, Shenzhen
of Guangdong Province, and Jilin Huaqiao Foreign Languages Institute as the pilot
areas and units to explore the ways to manage for-profit and non-profit private
schools, which aroused the enthusiasm of the pilot reform on classification
management.
1. Experiences in Modern School System

Taking Hunan Province as an example, private education in Hengyang enjoys
high reputation, which ranks the second in Hunan province. A variety of private
education organizations account for 1/3 of all schools in the city. The number of
registered students in private schools is high on the list. The public thinks half of the
elite schools offering basic education are private schools.
Many private schools in Hengyang have closed down because the private
schools are the family managing modes without the system of scientific and
democratic management and strict financial risk monitoring, which eventually
resulted in huge losses and adverse social impacts. The education administrative
departments of the Hengyang adhere to the principle of developing education
by standardized educational management and education innovation. A dozen of
normative documents are issued, such as Proposals on Further Regulating the
Management of Private Education in Hengyang and Regulations on Financial
Management of Private Schools in Hengyang, etc. Those documents try to break
the family operation and management mode, and then establish modern school
system. The normative documents clearly stipulate that private schools should set
up a board of directors or the School Council, open accounts with financial mon-
itoring, open accounts of education development funds, of which each school
should draw 25% of the net income as development fund and risk fund every year
by the double supervision from the education administrative departments and
schools. It is imperative to standardize the member composition, rules of procedure
and operation, and bring the board of directors as a decision-making body into full
play. Principals should possess the rights of administration and education inde-
pendently in conformity with legal provisions within the scope authorized by the
board of directors, gradually to promote the supervisory system of private schools.
It is also important to make the information on major decision-making known to the
public democratically, and to establish and improve the party and league organi-
zations in private schools bring their roles into full play, and to implement the rights
of the staff to participate in democratic management and supervision.
Three years’ later, most private schools in Hengyang established boards or
councils. The modern school system has established, and fund accounts have
opened in municipal full-time schools. The modern school system has a positive
effect on private school management.
2. Experiences in Classified Management of Private Colleges and Universities

In order to promote the rapid and healthy development of private higher edu-
cation in Shaanxi, the Shaanxi provincial government issued Proposals on Further
Supporting and Regulating the Development of Private Higher Education, clearly
pointed out to establish and improve the system of classified management on
private colleges, which is regarded as the basis of standard management and
financial support. Government allocates special funds of 300 million RMB per year
to support the development of non-profit private colleges and universities, and it
gains public finance at the same time.
It is reported that private universities and higher education institutions in
Shaanxi are divided into two categories: non-profit ones and for-profit ones, which
are voluntarily applied by the organizers, and examined and ratified by the relevant
departments at the provincial level. The non-profit ones include schools organized
by donations, invested without requiring obtaining the reasonable return and
invested requiring the reasonable return. The legal person registration differs
according to for-profit and non-profit private schools, which will get different policy
supports. After ratified by the Provincial Education Department, non-profit private
schools will register in the provincial Department of Civil Affairs. The private
schools, which are funded requiring reasonable returns, register as legal persons of
private non-enterprise organizations. The private schools, which are donated or
invested without requiring reasonable returns, will register as legal persons of
private institutions. After ratified by the Provincial Education Department, for-profit
ones register as enterprise legal persons in the provincial Department of Industry
and Commerce in conformity with legal provisions.
Shaanxi province stipulates that non-profit private colleges and universities as
well as higher education institutions enjoy the same preferential policies of taxation
as those of public ones. Simultaneously, private schools have equal rights as public
schools in terms of scientific research project application, bidding, evaluation,
transformation of research achievements, and financial appropriation of research
funds, etc. If the provider of a non-profit school requires a reasonable return, he can
earn a reasonable return from the school balance after deducting the cost of running
school, raising the related expenses of the development fund and the state regula-
tions, as a reward to the investors. The school decision-making institution puts the
award application forward. The education administrative department will jointly
determine the reasonable amount of return based on the amount of original
investment, additional investment, tuition fee, and school balance. The reasonable
amount of return can account for 40% of the school balance. The reasonable return
obtained will continue to be used for the development of the school and the
investment. According to the relevant regulations, the schools continue enjoying the
preferential tax policy. Profit schools rewarded by corporate systems.
In addition to Shaanxi, some provinces, autonomous regions, and municipalities
(Xinjiang, Inner Mongolia, Ningxia, Gansu, Jiangsu, Hainan, Jilin, Liaoning,
Hebei, Tianjin, Jiangxi, Anhui, Hubei, Hunan, Henan, Guizhou, Yunnan,
Chongqing, and Sichuan, etc.) have advocated to explore the classified management
system of for-profit and non-profit private schools in Provincial Education Plan.
While Shanghai regards it as an independent project, Shenzhen regards it as a
subproject of Improving the Development Environment of Private Education.
Zhejiang is the province, which pilots the national comprehensive reform on private
education, and Ningbo and Wenzhou in Zhejiang are the pilot areas. Overall, the
supporting system lists nationwide cover many systems and the corresponding
policies of finance, taxation, and government. For instance, the classified applica-
tion and registration system, the property right system, the finance system, the
supervision and inspection system, social governance system, personnel system and
donation system, etc. However, generally speaking, private schools are not familiar
with the systematic construction, so some significant systems have not appeared in
their schemes yet.
6.4 Suggestions 153
6.4 Suggestions
Ownership differs in the aspects of institutional logics, behavioral characteristics,

organizational culture, and substantial relationships. For-profit organizations and
non-profit organizations have significant differences in organizational goals and
values, operation rules, and internal governance structures, etc. The organizations’
relationship with the government, the market, the society, and the service objects
varies, so as to the basic rules abided by the existence and development of orga-
nizations. Therefore, logically speaking, the construction of private education
system stems from the distinction between for-profit and non-profit organizations.12
Based on the common characteristics of the two kinds of private school governance
systems, we should present different institutional tendencies according to their
differentiated organizational goals and values, operation rules, and internal gover-
nance structures.
It needs to be emphasized that there is not a fixed mode which suits for all
schools to improve school management system, so we must figure out specific
solutions to specific problems. After making rational classification of industries and
schools, we are supposed to treat them separately and insist on the principle that
practice is the sole criterion for testing reforms. It is also important to avoid
deviation and disorders.

of Governance System in Non-profit Private Schools
In general, non-profit organizations aim at pursuing the proposed social goals

instead of gaining profit. Organizations with legitimate tax exemption and tax relief
for donors are organizations set up for implementing public affairs. Of course,
non-profit organizations with the purpose of public service. It does not mean no
profit, but only means not for personal gain. Non-profit organizations are
non-profit-making, their services are welfare and public, whose resource supporting
system is diversified as well.
Non-profit private schools are non-profit organizations in education. To establish
the modern school system must conform to the common requirements (running
schools legally, self-management, democratic supervision, and social participation),
and the common characteristics of the construction of non-profit-organization
system. On this basis, the construction of the external system needs to emphasize
the government reducing administrative decentralization, perfecting supervision
mechanism, and strengthening social participation. Constructing the internal system
should mainly focus on perfecting the internal decision-making mechanism of the
board of directors and the school council. Besides, the following measure should be
12
Wang (2014).
taken: first, improving the internal supervision mechanism; second, making party
organizations play a core role in politics and social security; third, emphasizing the
school regulations; fourth, making clear the principal’s responsibility system; fifth,
building the team of principals; sixth, bringing the role of academic authority into
full play; and last but not least, establishing the governance mechanism of all the
stakeholders.
6.4.1.1 Constructing the External System
1. Government function transformation lays the foundation for the modern con-
struction of the external system of non-profit private schools. The government is
obliged to revolutionize the traditional control mode, clarify its role and promote
the separation of management, operation and evaluation for the purpose of
establishing a standard and orderly educational management system with a
separation of government and public affairs, clear responsibilities, and unified
coordination.
First, we should clarify the government orientation. The new public manage-
ment theory holds the opinion that government plays the role of taking the helm
rather than the paddles. Government services should be market-oriented,
referring to the successful experience and methods of private sectors.
Competition should introduce in the public management. Government should
transform the strict administration in the past to widely authorization so that the
government behavior is valid. Second, it is imperative to transform the gov-
ernment functions. The functions of the U.S. Ministry of Education only focus
on two basic areas: first, establishing the national education database and pro-
viding information for educational assessment and decision-making; second,
guaranteeing the education fairness.13 The Chinese educational departments are
mainly responsible for carrying out overall planning, making policies of guid-
ance, supervising and managing, and providing public education services.
Specifically speaking, the government can appraise and ratify the school scales
according to the conditions for running schools. It will gradually expand the
autonomy of undergraduate enrolment, actively expand the autonomy of college
enrolment, and moderately expand the autonomy of higher vocational education
enrolment, which can be determined independently in terms of the annual
enrolment plan, enrolment scale, admission standards, and methods. Private
colleges are encouraged to select the qualified students in a scientific way.
Private colleges are encouraged to adjust and optimize their disciplines inde-
pendently to meet the needs of the economic and social development. Based on
their own conditions, services, and operating costs, together with the social
needs and affordability, private colleges can decide the charging items and
standards by themselves, which will later make publicity after keeping a record
13
Wang (2012a).
6.4 Suggestions 155
in the price departments. In the future, we must focus on the government

functions transformation and powers decentralization as well as strengthen the
linkage of the departments to ensure that the right to decentralization is in place.
Third, we should change the way of government management. The macro-
management, taking good use of laws, regulations, financial support, develop-
ment plans, information services, and other necessary administrative measures,
should take place of managing schools directly. The core requirements, of which
the means and styles of government management transformation, are shifting
from direct management to indirect management, from micromanagement to
macromanagement, from education to management, and from management to
service. The government’s direct management of colleges and universities has
transformed into macro regulation. The transformation is not a weakening of
government functions, but a strengthening at a higher level, which means the
government has to shoulder greater responsibilities and play a more important
role.14 At present, we need to improve relevant laws, refine the relevant pro-
visions, and increase operability in particular. In order to ensure the autonomy of
private schools, we need to stipulate the obligations and legal responsibilities of
all the stakeholders clearly. Based on fully understanding the differences
between various schools at all levels, the legislations should be classified
according to the particularity of different schools.
2. Improving the supervision mechanism will guarantee the modern construction
of the external system of non-profit private schools. The autonomy of private
universities is a multi-subject, which involves closely related multi-participants.
With the gradual decentralization of government power and the expansion of
autonomy of higher education, on the one hand, private schools are supposed to
set up special supervision departments to supervise and restrict the behavior of
authority, namely, the internal supervision. On the other hand, government and
social organizations should measure private schools’ performance, that is to say,
government and social organizations play the role of external supervision. By
doing this, it can set up a supervision mechanism with the characteristics of
government leading, department cooperation and social participation.15
The government mainly supervises the implementation of laws and regulations,
and the violation of regulations in private universities. Specifically speaking, on
the one hand, the standard supervision on daily management of private uni-
versities refers whether they can establish a sound internal governance system,
improve the corporate governance structure, and promote the democratic
decision-making and management. On the other hand, it is responsible for
supervising and investigating the disorderly conducts. For example, private
investors run schools without registration in the educational departments,
secretly withdraw funds, transfer funds or embezzle funds, allocate the school
balance without conforming to the state regulations.
14
Wu (2008).
15
Shi and Zhou (2014).
The social supervision mainly includes the supervision from the public, the
press, the democratic parties, and other social groups. We should introduce and
make use of various Medias’ supervision roles, such as network, television,
radio and newspaper, etc., creating a variety of accesses and measures such as
free hotlines, mailboxes, email report, keeping confidential, and rewarding
whistleblowers.
Besides, we should perfect the financial accounting and auditing system. The
non-profit private schools perform accounting system of non-profit organiza-
tions (or temporarily applicable accounting system in institutions). Non-profit
private schools should open a special bank account, in which tuition fees,
financial grants, government grants, and other public funds deposited in this
account. It is important to insist on earmark a fund for its specified purpose only,
which will guarantee the fund is used for school education, establishing the
annual report system on the school financial accounting. That is to say, the use
of tuition fees, financial grants, government grants, and other public funds
should be reported to the board of directors, the school council, and the staff
congress at the end of every year. Simultaneously, it should keep record in the
peer competent departments and made public via campus network and other
Medias. At the end of the fiscal year, the accounting firm ratified by the
administrative department of education examines and verifies the assets and
finance of private schools and eventually issues the auditing report.
3. Improving the supervision mechanism is the focus of the modern construction of
the external system of non-profit private schools. In 1993, the CPC Central
Committee and the State Council promulgated The Strategy of China’s
Education Reform and Development. The strategy pointed out that government
supports and encourages primary and secondary schools to establish education
organizations in the community with the nearby enterprises, institutions, sub-
district offices, or residents’ committee. Those measures aim at absorbing more
social forces to participate in the school development and management, opti-
mizing the educating environment exploring, and figuring out a combining form
of education and the society, which accords with the characteristics of primary
and secondary schools. In the United States, the ways in which community
participates in the school management are as follows. Schools build relationship
with departments of the school districts. Schools look for help from the staff.
The community celebrities and parents establish an Education Committee
jointly. Parents elect to build a Parents Committee and take part in the school
management directly. Take France as an example, the school management
system is composed of teachers’ committees, parents’ committees, school
boards, and principals participate in school management. How to establish a
community-school contacting and cooperative mechanism in China? How to
bring the negotiation mechanism of democratic participation into full play
during the school development? To achieve these goals, we need to build a
6.4 Suggestions 157
variety of committee systems at different levels, such as parents’ committees,

classes’ committees, students’ committees, and school councils, etc.16
In addition, we should encourage establishing and developing the intermediary
organizations. For example, there are independent federal and state agencies for
private education affairs in the United States. The social institutions take some
responsibility in managing private higher education. Nonofficial institutions take
some of the responsibilities, such as the nonofficial assessment system, the
unofficial appropriations committee, etc.17 Article four, Chapter 15 of Education
Plan points out to cultivate the professional agencies offering education services.
The social organizations, such as industry associations, professional societies,
foundations, and other social organizations, should play active roles in the
public governance of education. With government’s encouragement and pro-
motion, a number of educational intermediary institutions came into being to
undertake educational supervision and evaluation, decision consultation, infor-
mation management, examination accreditation, qualification assessment, and
other functions, making the role of social organizations into full play in the
supervision of education assessments, which offers management consulting,
supervision, and assessment. By means of providing professional evaluation
services, the social organizations provide the necessary reference for govern-
ment decision-making, a reasonable basis for teaching improvement and
effective information for the public supervision.
Establishing a new partnership between home and school. By establishing the
Parent Advisory Committee, teachers and parents can communicate with each
other regularly, so that parents can benefit from all kinds of social services of
school, and a new school-family partnership will come into being systematically.
6.4.1.2 Constructing the Internal System
1. We should improve the decision-making mechanism of the school council

(board of directors), which is the highest authority and decision-making organ
for the legal person. The decision right is fundamentally important for an
organization, while on which the executive power based on specific operability.
The supervision right is responsible for supervising the implementation of the
decision right, the executive power, and their legitimacy. Those three rights
constitute an organic and unified organizational structure with mutual coordi-
nation, mutual support, and mutual restriction.
The decision-making power stems from investors or sponsors of the university
property, so the decision-making power should belong to the investors or
sponsors. However, it is necessary for colleges and universities to have a
16
Xu (2005).
17
Wang (2012a).
professional management organization because of the development of the

modern university system, especially the constant expansion of university
education as well as the increasingly technical and professional discipline
construction with the development of knowledge economy, which also
strengthened by the diversified investment structure.18
In terms of the council internal structure, we should make detailed provisions for
the measures for forming the board, membership, tenure and qualification, the
scope of power, and rules of procedure. Especially with the diversification of
stakeholders, the problems of identities, the relative, concurrent and credit,
problems between directors are becoming more and more prominent. Therefore,
we must have specific requirements on these issues. For example, Taiwan
province in China clearly stipulates the family relatives within three generations
(including direct and collateral relatives) cannot take the board and president of
the private university at the same time, which is worthy of emulating and
learning. Directors have the right to claim appropriate remuneration and fulfill
their obligations to ensure the reputation. Members of the School Council (the
board of directors) take part in decision-making; they are given certain contract
income to ensure that their work can get basic remuneration while taking
responsibility. The remuneration can be salary (upper limit), capital or atten-
dance fee, and so on. In addition, there are some role pedigrees in the actual
operation process, some are controlling, some are coordinating, some are just
proving consultation, and some are formalized departments.
Therefore, we need to define the authority and function of the board of directors
and the rules of procedure in a better way. Provisions of meetings should be
specifically defined, and there are some issues, such as the minimum number
based on which the meeting can be held (some provision stipulates the meeting
will be held if there are more than half of the participants). Is it possible to
delegate a representative to the meeting, the notice procedures, the challenge
system, voting procedure, the deeds of the competent authority-in-charge in case
of the board meeting cannot be held, and there are some illegal phenomena.
2. We should improve the internal governance system of supervision and restric-
tion. The supervisory board system is important in the corporate governance
structure, which constitutes the key restriction system in a company. As for the
power allocation, the supervisor’s board must achieve a reasonable and
appropriate balance with other organizations, such as the board of directors, the
administrative system with the principal as a leader and the congress, etc.,
avoiding the lopsidedness, which will in turn cause the imbalance of power
structure.
2:1 It is of great significance to set up a board of supervisors in private schools,
the members should come from the following four groups: first, the des-
ignated representatives from the educational administrative agencies, who
18
Peng (2006).
6.4 Suggestions 159
help to monitor the school running; second, the representatives of the school
staff, who help to protect their legitimate rights and interests; third, the
representatives of students, parents, and the community, who help to
guarantee the rights of the educated under the information asymmetry; and
fourth, the representative of shareholders (non-director and non-principal
shareholders), who help to protect the rights of investors.19
2:2 The 54th article of the Company Law of China clearly stipulates the
functions and powers of the board of supervisors. The relevant provision,
the 37th article of Japan’s Private School Law, has referential significance,
for instance, monitoring the legal person’s property, supervising the
implementation of the business by the members of the school council. Based
on the reality of Chinese private universities, the power of the board of
supervisors is designed as follows: first, checking the financial standing, the
school teaching as well as the protection of the rights and interests of
teachers and students regularly; in the second place, supervising the
behaviors of rules, regulations, and laws violation effectively when the
director or the principal is performing their duties. When their work dam-
ages the interests of the school, faculty or students, they are bound to correct
it. A lawsuit may be brought to them when necessary. In addition, the
internal supervision organs of the party, such as the discipline supervision
and the audit supervision, and a variety of internal and external supervi-
sions, should work, which will form the resultant force of internal and
external governance.
3. Playing the party organization’s roles as political core and supervisor. First, we
must recognize the core role of party organization in the internal governance of
private universities. It is important to make political leadership work effectively
in private colleges and universities, advocate and carry out the Party’s policies,
implement the resolutions of the superior party organization, and adhere to the
principle of public welfare education and socialist orientation. In the second
place, the Party organization has the right to participate in school management.
We should make it works by establishing the decision-making system and
conference system, by setting up the coordinating mechanism between the Party
organizations. The School Council and the its president takes the leading role.
Principal exercise their authority by supporting private schools’ reform and
sustainable development, for instance, devoting themselves to solve the promi-
nent problems which hinder private school reform. Third, we should put the
supervision of the Party organization into action by guiding and supervising
the school to discharge its duties legally, by supervising and urging the
decision-making bodies and the school principal to manage education according
to the law, standardizing their management and run the school in a scientific way.
19
Peng (2006).
4. We should pay attention to the school constitution’s standardization function.

Organization is usually regarded as a link of contracts. While the constitution is
a common contract between the parties who have reached and abided by each
other. It is a long-term and standardized arrangement that a legal person makes
on key issues. The university constitution is the basis for democratic manage-
ment, internal regulations, and legal governance, which is also a necessary
condition for a university to run independently and operate standardly. The
constitution of private universities includes the following articles: (1) the nature
of private colleges, which need to seek a balance between public welfare and
profit-making mode; (2) talent training modes and objectives by gradually
establishing a talent training system, which adapts to the student development
and be human-oriented; and (3) rights and responsibilities of all the stake-
holders. A governance structure suitable for the long-term development of
private universities should be constructed systematically.
5. We should give a clear explanation of the principal responsibility system and the
management team building. The principal plays a very important role in school
construction and development, which cannot be replaced by any other organi-
zations in the school. The principal holds the senior administrative position, and
they command, order, and take full responsibility.20 In order to guarantee the
principal’s administrative power and the exercise of his authority, we must clarify
the rules and define the powers and responsibilities, constructing the incentive
and restraint mechanism of managers, such as principals, chairs and heads of
departments, and so on. First is establishing the system of principal election and
promoting the professionalization of university presidents actively. The selection
of university presidents in western developed countries is academic, extensive,
and democratic. For example, it usually takes several months or even a year to
select a university president in America. The board of directors formulates the
standard selection procedures and set up specialized selection committees.
Second is establishing principals’ tenure system. It is also important to build the
responsibility and benefit sharing system. TIAA-CREF in its Policy Statement of
Corporate Governance points out that the total remuneration plan for managers
must be able to attract, retain, and motivate the best leaders and managers
according to the industry standard. Third is establishing the democratic cen-
tralism system to guarantee the principals scientific decision-making. Principals
must act in accordance with the principle of democratic centralism. Any major
problems involving teaching, scientific research, and students need to be sub-
mitted to the principals’ office for discussion, and decisions should be made
according to the principle of majority compliance. At the same time, the president
and the vice president must have clearly defined responsibilities; in case the
president acts arbitrarily without supervision and causes major mistakes.
20
Personnel Department the Ministry of Education (1999).
6.4 Suggestions 161
6. Playing the role of the academic organizations. As academic organizations, there

are two kinds of power in colleges and universities, namely, the administrative
power and the academic power. The two kinds of powers bear their own
characteristics of differing from each other and complementing each other,
which constitutes a dualistic structure of the internal power in colleges and
universities.21 It is very common in colleges and universities that the adminis-
trative power (generated by the management behavior) and the academic
authority (generated by the education and teaching behavior) game and even
conflict with each other. Therefore, we should set up University Council or a
committee of professors, gradually realizing the clear-cut responsibilities of
board of directors, principals, and professors at school level, to achieve the
balance between the administrative power and academic power, and ensure the
scientificity, rationality, and feasibility of school’s decision-making. The
members of the Council should include various groups, such as professors,
general teachers, double-qualified teachers, administrators, and students. As a
representative of Academic Authority in private colleges and universities, the
University Council or a committee of professors are responsible for managing
academic affairs and developing academic policies. Thus, we should take
teachers’ academic freedom and teaching into full account, and avoid the
administrative power surpasses the academic power.
7. We should establish a common governance mechanism of stakeholders, which
refers to a governance system that all the stakeholders, including students,
parents, employers, alumni, educational administration departments, and local
governments, etc., take part in the school management and promote the school
development. In view of the fact that there are multi-dimension interest rela-
tionships between the main body and school, and the relationships among the
main bodies, the co-governance is actually a common safeguard for the interests
of the school and its stakeholders. We should establish a communication
mechanism among stakeholders and information disclosure system, to let the
public access to information. We also should establish the guiding mechanism
for the stakeholders by establishing a mechanism that the teachers (staff) con-
gress participates in decision-making on campus management. Making students,
together with parents, alumni, and the public, take part in the school affairs.
Establishing the supervision mechanism of stakeholders by making it clear that
the faculty congress. As the representative organization, the faculty congress has
the rights to supervise all the school activities, to guarantee the staff’s rights of
democratic managing and supervising. Establishing the relief mechanism to
protect the legitimate rights and interests of stakeholders ultimately.22
21
Peng (2006).
22
Shi and Zhou (2014).

of Governance System in For-Profit Private Schools
A profit-making organization is a company with independent legal entity, such as

an enterprise, a company, and a variety of business institutions. The profit-making
organization is approved by the industry and commerce administrations, registers
for making profit. The concept of profit varies. Profitability refers to a definition
applied in organization rather than the profit in economics, that is to say, the
operation of organization aims to get profits. For-profit organizations are more
independent in management and funds, and attract more commercial, operational,
competitive, and independent mechanisms.
The for-profit private schools are of dual natures, including commercial and
academic which are unique institutions integrating the characteristics of enterprises
and academic institutions. To establish the modern school system must conform to
the common requirements (running schools legally, self-management, democratic
supervision, and social participation) and the common characteristics of the con-
struction of for-profit organization system. On this basis, to construct the external
system needs to focus on improving the corresponding regulations and policies,
fully implementing the autonomy of running schools and effectively supervising the
financial standings. To construct the internal system needs the internal governance
based on the mature corporate governance.
6.4.2.1 Constructing the External System
1. First of all, a sound regulatory system is the basis of the modern for-profit
private school external system construction. At present, the construction of laws
and regulations for profitable private schools is mainly to solve two problems.
They are the relationship between public welfare and profitability, and the unity
of educational laws and economic laws. (1) Dealing with the relationship
between public welfare and profit. According to the Education Law, education
should not aim at profit. Under this legal system, the profit-making private
schools have narrow living space. Therefore, the educational legislation should
first modify the higher level law in order to give them the official legal status. At
the same time, we should make a series of corresponding policies, such as the
application procedures, organizational operation requirements, supervision
regulations and policy support system, etc., which will promote the growth of
for-profit private schools as an innovation when they are born. (2) Figuring out
the solution to the unity of educational laws and economic laws. For-profit
private schools are first educational institutions guided by educational laws,
following the Education Law, Higher Education Law, Teacher’s Law,
Vocational Education Law and Private Education Promotion Law, etc.
6.4 Suggestions 163
Meanwhile, for-profit private school is an independent economic legal person

abiding by the law of enterprise operation, which must follow the Company Law
and the Market Regulation Law, the Price Law, the Contract Law and the
Intellectual Property Law, etc. Therefore, we should consider these laws and
regulations, and act on the unity and coordination of profitable private schools.
We should pay attention to innovation and development, so that the legislation
system of profitable private schools in China is practical, applicable, and
scientific.
2. It is crucial to run for-profit school independently in an adequate way. Based on
the basic experience of Chinese economic system reform, the market-oriented
reform of the socialist market economy starts from the pilot reform of private
economy, gradually decentralizing the power of state-owned economy and
expanding the autonomy of private economy. For-profit private schools should
have the completely independent rights of running schools. They are as follows.
(1) The autonomy of student recruitment, that is to say, private schools deter-
mine the scale of school and make the annual enrolment plan independently. In
accordance with the state laws and regulations, their autonomous student
recruitments should be market-oriented and society-oriented. (2) Independent
pricing. Private schools determine and adjusting the pricing standard by them-
selves, taking the future requirements for school development and price fluc-
tuation into account. (3) Independent teaching rights. Teachers teach and carry
out educational activities independently. (4) Right of degree granting. Private
schools have the right to grant degrees and certificates under the guidance of the
administrative departments of education, obtaining market reputation by the
authentication and evaluation of the industry and professional organizations.
Financial autonomy. Private schools are responsible for their independent
operation and their profits and losses.
3. Effective financial monitoring is the key point of for-profit private schools to
construct modern schools’ external system. The Contract Failure Theory pro-
posed by Henry Fasman insist that if for-profit institutions are permitted to
provide certain products or services, they must have the following distin-
guishing features. First, the products or the services themselves are complex,
whose providers obtain more information than the buyers do. Therefore, it is
very hard for the buyers to make evaluation and judgment on them. Second, the
payers themselves may not be the direct beneficiaries of the service. Third, for
there is a long service cycle, it is very difficult for the buyers and providers to
reach an agreement. Even on the condition that they sign the contract, it is still
hard to move forward, so the contract failure appears. For-profit organizations
are likely to lower their products and services by using information asymmetry.
Pursuing maximum profit will eventually lead to the opportunistic behavior and
hurt consumers in the end.
Therefore, it is necessary to monitor the finances of for-profit private schools

effectively. On the one hand, disclosure system of finance should be adopted in
for-profit private schools, trying to make the profits above board. At the same
time, the government should treat the profits of private schools fairly and dis-
tinguish the profit behaviors between school legal person and investors in the
process of supervision. Only putting public finance and public supervision into
effect can control the flow of funds. On the other hand, we suggest carrying out
accounting system pilot reform in some private schools and implementing the
principal–agent accounting system, to guarantee private schools financial is
open, fair, and impartial.23
6.4.2.2 Constructing the Internal System
1. We should further improve the governance structure according to the company

system. In accordance with the Company Law, constructing the internal system
of for-profit private schools requires a corporate governance structure. The
structure is constituted by board of shareholders, board of directors, board of
supervisors and senior managers, etc. They work together and remain mutually
interdependent and conditioned. It will guarantee the internal system work
effectively and improve shareholders’ meeting system. The board of share-
holders is the authority of the company, whose primary duties include the
following three aspects. (1) Determining the company’s operational policies and
investment plans. Electing and replacing the non-staff representatives as the
directors or supervisors. Making decisions on the remuneration of the directors
and supervisors. Examining and approving the reports from the board of
directors. Examining and approving the reports from the board of supervisors.
Examining and approving a company’s financial budget and final accounts.
Reviewing and approving a company’s plans of profit distribution and loss
compensation. Making resolutions to company’s merger, division, dissolution,
liquidation, or change of corporate form. Amending company’s articles of
association. Exercising other functions and powers specified in the articles of
association.24 (2) Optimizing the work of the board of director. The board of
directors should make decisions that are more scientific by attracting directors
with diversified background. We should set up the independent director’s sys-
tem, which will have a positive significance to safeguard the interests of
shareholders and improve the corporate governance. Meanwhile, we should set
up the full-time director’s system, which can guarantee the director’s ability and
time when he performs his duties. Decisions that are more specialized will be
made by means of perfecting the special committees of directors, such as
23
Xu (2005).
24
Lu (2010).
6.4 Suggestions 165
establishing committees of strategy making, auditing, nominating, remuneration

management and performance evaluation, etc. (3) Letting the board of super-
visors work effectively. The board of supervisors is a legal and necessary body
of supervision in modern corporate governance. It is significant to strengthen the
supervision on the managers, which will help to improve the company’s per-
formance, and protect the shareholders’ rights and interests. The Company Law
clearly stipulates board of supervisors is an institution, which is responsible for
supervising and inspecting a company’s business and decision-making. The
board of supervisors is an independent body, which consists of the board of
directors and managers, representatives of shareholders, and staff (Fig. 6.1).25
2. We should establish the modern school assets management system. Based on
the market economy, the modern enterprise system is a new enterprise system
with clear property rights and clear rights and responsibilities. The modern
enterprise system is separated from government administration, enterprise
management, and scientific management, putting the corporate legal system as
the main body and the limited liability system as the core. In accordance with
relevant laws and regulations, profitable private schools can register as
company-owned enterprises, individual proprietorship enterprises, partnership
enterprises, and other legal person enterprises, having the conditions to establish
modern enterprise system.
Clear property right refers to the relationship among the rights of possession,
usage right, income right, and disposition right. Profitable private schools enjoy
the property rights of school juridical persons. The property relationship
between the host and private schools can be handled according to the rela-
tionship between shareholders and the profit-making organizations. It is
important to define the owners, operators, and employees’ rights and respon-
sibilities properly. Owners of private schools have the right to benefit from
assets, make major decisions, and select managers according to their contribu-
tions. Meanwhile, private schools assume corresponding limited liabilities for
school debts when the school fails. Separation of Government Administration
and Enterprise Management refers to the government administration and its
macro and industry management should separate from the operation and man-
agement of the enterprise. For the for-profit private schools, it is essential to
expand the autonomy of running schools and separate management from
operation and evaluation. Scientific management requires scientific quality
management, production management, supply management, sales management,
personnel management, research and development management respectively.
The core of management is the incentive and restraining mechanism, which is
devoted to mobilizing people enthusiasm and creativity.
25
Zhuang (2013).
Entrustment of
Entrustment of
audit
economic
responsibility
responsibility
between owners
between owners
and auditors or
and proprietors
board of
directors
The relationship between supervisors and supervisees

(The board of supervisors and proprietors or the teams, namely, general
managers or teams)
Fig. 6.1 The internal governance structure of for-profit private schools
3. It is essential to have appropriate organizational structures and scientific system

of internal management. According to the requirements of modern enterprise
system, for-profit private schools can establish the appropriate organizational
structure and the scientific system of internal management, which helps to deal
well with the various relations between schools and schools, schools and gov-
ernments, schools and markets as well as schools and the society. (1) Updating
the management stereotypes by creating the conception of modern
market-centered management. (2) Realizing management organization mod-
ernization by establishing an organizational command system, which is well
adapted to the market. (3) Establishing high-level strategic research institutions
and highly efficient decision-making bodies by doing further research on the
school strategic development, which including the definite development strat-
egy, innovation strategy and marketing strategy. (4) Managing schools with
widely used modern techniques and methods, including the advanced admin-
istrative approach for decision-making and forecasting, technology and design,
production organization and planning, and computers. (5) Keeping various
production factors open and flowing. Cooperating with the external capital
market, manager market, labor market, and other markets of production factors.
For-profit private schools can constantly optimize the school structure and
effectively improve school’s competitiveness via operators’ selecting and rese-
lecting, workers’ reasonable flowing.
6.4 Suggestions 167
Overall, no matter for-profit or non-profit school, it is important to formulate

regulations in accordance with the law, manage schools by the articles of
association, improve the board of directors and board of supervisors, optimize
personnel composition, improve the corporate governance structure, and stan-
dardize the behavior of running schools. The government should perfect laws,
regulations, and financial supervision system for the modern system construc-
tion of the two types of private schools. By doing so, it will help to promote the
construction of modern school system in private schools through promoting the
internal development by the external forces and integrating the internal and
external forces.
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Chapter 7
Rights and Interests Guarantee
of Private School Teachers
The protection of the legitimate rights and interests of private school teachers is an
important part of private education reform and development. As long as teachers’
legitimate rights and interests are guaranteed effectively, private schools will
develop soundly and build a well-developed teaching profession. Therefore, to
guarantee the legitimate rights and interests of private school teachers and students
is an issue worthy of paying close attention to.
The chapter sorts out the policies on the protection of teachers’ rights and benefits,
analyzes the policy implementation and problems about team building and the pro-
tection of rights and interests of private school teachers. The research finds out the
main problems which private school teachers are facing at present. For instance, their
social status is not high, their identity is unclear, the salaries and welfare are insuf-
ficient, the professional titles evaluation is difficult, the teaching staff are unstable
with an unreasonable structure at the same time, teachers don’t show a strong sense of
organizational identification, the professional development is restrict, etc. By ana-
lyzing the causes for the above problems and the analysis based on relevant theories,
this chapter draws a conclusion that a variety of measures should be taken to guar-
antee not only the rights and interests of private school teachers but also the equalities
to public school teachers in respects of professional title appraisal, academic
achievements evaluation, professional development, etc. In future, regulating the
registration types of for-profit and non-profit private schools should be the top pri-
ority. Overcoming the legal obstacles that the non-profit private schools register as
“institutions” or “private institutions” and for-profit ones as “business entities”. The
government, sponsors (investors), teachers, and social stakeholders need to properly
solve the problems of private school teachers’ status, increase teachers’ salaries and
welfare, improve the academic system of professional title appraisal, and encourage
teachers to participate in the school democratic management actively. It is also
important that teachers’ rights and interests in private school should be protected
successfully, there should be sustainable improvement measures for private school
teachers to protect their rights and interests.

170 7 Rights and Interests Guarantee of Private School Teachers
7.1 Relative Polices and the Effectiveness
In addition to principles of private school teacher’s rights and interests stipulated by

People’s Republic of China Private Education Promotion Law (hereinafter refer-
ring to Private Education Promotion Law) and its enforcement Regulations, many
local governments have issued new policies to guarantee the rights and interests of
private school teachers facing new situation of the comprehensive and deepen
reform in education. In general, the new policies focus on the following points,
strengthening the construction of teaching profession continuously, raising teach-
ers’ pay steadily, and establishing a multilevel social security system gradually in
order that both the private school teachers and public school teachers have the same
legal status and are treated fairly. Meanwhile, given the natures and characteristics
of different types of organizations, local governments can take different measures to
guarantee teachers’ rights and interests.
7.1.1 Carry Out the Classified Management and

Provide Differential Support
Regarding private school teachers’ team building and rights and interests protec-
tion, the existing policy focuses on encouraging, guiding, and mainly supporting
the non-profit private schools (refers to private schools, which do not require to
obtain a reasonable return according to the original policy).
The local government of Guangdong Province implements the policies of private
schools’ classified management actively, and improves the related regulations of
corporate registration, takes the differentiated policy support at the same time. The
local governments actively encourage and support private schools which are funded
by donation or investment, meanwhile, those schools do not require to obtain a
reasonable return, and implement the preferential policies in terms of reward
assessment, financial support, project arrangement, the introduction of talents, and
teachers’ team building, etc.
In Yiwu of Zhejiang Province, the local government is exploring the mode of
classified management of private schools. Yiwu “improves the supporting system
about the differentiated policies on for-profit and non-profit private schools. The
non-profit private schools can have the equal legal status to public schools.”
In Guiyang of Guizhou Province, the local education authority takes classified
management on private education evaluation and the corresponding support system.
The deeds based on promoting private education classified registration. For the
private schools that provide an academic education, the relative department makes
comprehensive evaluations according to the private school’s scale, school condi-
tion, management level, etc. The private schools can be classified into four types
which are highly qualified, excellent, developing, and limited eventually. Then, the
private schools are managed and supported according to the four different types.
7.1 Relative Polices and the Effectiveness 171
The private schools which with standardized school governing structure, corre-
sponding accounting system, and standard regulations to guarantee the basic rights
and interests of teachers and students, those schools can be evaluated as the highly
qualified and excellent ones preferentially. Meanwhile, the school infrastructure
investment and education level are taken into account in the process of evaluation.
In addition, the local department of Guiyang is exploring the supportive policies in
which teachers in highly qualified private education group will join in the autho-
rized academic teacher’s group. The education authorities, along with relative
departments, provide the reasonable authorized academic teachers’ positions in
accordance with the running scale of the highly qualified private education
group. By doing this, they can manage teacher recruitment, and they are responsible
for offering salaries and social security for the new teachers by themselves.
In Weifang of Shandong Province, the local government insists on improving
the supporting policies to help teachers in non-profit private primary and secondary
schools. If the principals or teachers in public schools would like to work in
non-profit private schools, they can still keep their position identity and staff
relations in public schools, and enjoy the same retirement remuneration as the
public school staff. In the process of preparing teachers’ recruitment in public
schools, the seniority of teachers who are hired to work in non-profit private schools
should be calculated continuously based on their original working hours. The
non-profit private school teachers enjoy the same talent recruitments policies as the
public school teachers in the aspects of residence registration, housing security,
children’s schooling, etc.
In the Zhoukou City of Henan Province, the local government encourages pri-
vate schools to become larger and stronger with preferential policies. The gov-
ernment will help a number of non-profit private schools which with high qualities,
distinctive features, and good reputation via sending a certain proportion of public
school teachers to work in private schools. Those teachers will keep the public
school identity and get the basic salaries from public schools, while the
performance-related pay will be paid by private schools.
7.1.2 Set up a Guiding Standard and Raise Salaries
In order to solve the problem of low salaries and the high turnover rate, all the
administrative departments of education nationwide have taken corresponding measures
to raise private school teacher’s salary by setting up the guiding standards of salaries.
Guangdong Province has vigorously expanded the attractiveness of the positions in
private schools and improved the overall qualities of teachers. Guangdong Province
stipulates that sponsors should put the relative regulations into practice and pay the
teachers’ salaries on time. Guangdong Province also requires the local governments
formulate the salary standard in accordance with the development of local economy
and society as well as local salary standard in public schools. Eventually, private school
teachers’ income is equal to public school teachers’ income.
In Longyan of Fujian Province, the local government keeps raising private

school teachers’ salary and set the salary standard (minimum standard) according to
the performance pay standard of the public school. Based on the principle of “equal
work, equal pay,” the local government has proposed the allocation principle, that is
teachers with hard work and excellent performance, frontline staff, and backbone
teachers should be paid more. Thus, the performance pay system can be improved
and implemented in private schools. It helps to inspire teachers’ initiative and
enthusiasm as well.
In Xiamen City of Fujian Province, the local government encourages to raise the
salary for the staff in private universities. Based on urban consumer price index,
social insurance and housing fund paid by the individual, average salary, etc.,
Xiamen City sets the minimum salary standard using the reference of enterprises’
minimum standard and the average salary of public and private universities.
In Jiyuan of Henan Province, the local government allocates a certain proportion
of teachers’ salaries to private schools to meet the relevant requirements. If the net
assets or the construction investment of private schools meet the prescribed amount
which is identified and evaluated by the agency commissioned by the Department
of Finance and the Department of Education, the private schools can get a certain
proportion of staff salaries in the following 5 years according to the school size
approved by personnel department and the city’s minimum salary standards of last
year. There are several specific funding standards. First of all, the local government
allocates 30% of teachers’ salary to private schools whose net assets reach 30
million RMB and develop rapidly. In the second place, 50% of the private schools
which get the investment of 50–100 million RMB at a time. Third, 70% of the
private schools which get the investment of more than 100 million RMB at a time.
In Wenzhou of Zhejiang Province, given the public schools’ income distribution
policy and the private schools’ actual condition, the local government sets the
minimum salary standard of private schools (including private kindergarten). The
minimum salary standard is 56,000 RMB per year in private senior high schools;
54,600 RMB per year in private primary and lower secondary schools; and 36,000
RMB per year in private kindergartens.
In Hubei Province, the local government raises teachers’ salary in private college
and university, and sets salary standards with reference to those of public ones.
7.1.3 Implementing Preferential Policies to Enlarge

the Number of Talents
The talent introduction is an important factor for the sustainable development of

private schools. China explored preferential policies for the introduction of talents
in private schools nationwide in 2013.
Guangdong Province creates conditions to attract and retain talents to private
schools by implementing high-level talent introduction policy as the same as those
of public schools. The policy contains talents’ household relocation, housing
benefits, children’s schooling, etc. High-level talents are encouraged to work in

private schools. The excellent public school teachers are encouraged to teach or
take administrative positions in private schools. For instance, Guangdong Province
is exploring the ways to help private school teacher, teacher’s spouses, and children
to settle down officially by integrating the system. Guangdong Province focuses on
teachers under 45 years old with bachelor degree and intermediate professional
titles, and those who have been working in private schools for more than 4 years
with outstanding teaching performance.
In Xinjiang Uygur Autonomous Region, the local government implements talent
introduction policy actively. The policy encourages college graduates and teachers
with qualifications to teach in private schools. The personnel department will recruit
postgraduates with master or doctor degree, qualification certificate, senior pro-
fessional title, and advanced skills. If the above-mentioned talents sign a 30-year
labor contract with private schools, the local human resource and social security
departments will help them settle down officially according to the talent introduc-
tion policy.
In Guang’an of Sichuan Province, the local government encourages private
schools to attract, stabilize, and cultivate excellent teachers. The college graduates,
professional and technical personnel are encouraged to work in private schools
according to the talent introduction policy. Meanwhile, private school teachers have
the equal rights as public school teachers in the aspect of household migration and
housing problem.
In Yiwu of Zhejiang Province, the local government encourages to establish
talent introduction mechanism, and recruit more outstanding talents nationwide.
High-level talents who are employed by private schools in accordance with the
relevant provisions will enjoy the same preferential policy as those in public
schools.
7.1.4 Improve the Social Security System to Narrow

the Income Gap
1. Private schools improve the social security system for teachers. Guangdong
Province advocates to establish the annual salary system to make teachers in
private schools get the retirement pension equivalent to that of public schools. In
some regions, private schools’ annual salary system will be rewarded, and
teachers will get the relevant allowance.
In Zhejiang, the education authority requires private schools to pay part of the
social insurance for teachers, encourages private schools to establish supplementary
insurance systems such as enterprise annual salary, and improves private school
teachers’ retirement pension. Private school teachers whose insurance are institution
pension insurance can pay the insurance in accordance with local institution stan-
dard and receive the corresponding pension after retirement. Private school teachers
whose insurance are enterprise pension insurance can pay the insurance in accor-
dance with local enterprise standard and receive the corresponding pension after
retirement. At the same time, it is stipulated that private school teachers transfer
endowment insurance between different endowment insurance systems, and the
years of payment can be calculated continuously according to the provisions.
Among them, Yiwu City stipulates that non-profit private schools’ teachers or
outstanding administrators can join the institution insurance system in accordance
with the standards of institutions and receive the corresponding social security
benefits. Those teachers or outstanding administrators should match conditions
required by talent introduction policy, or have obtained the senior professional titles
and been employed by the certain school, or have obtained intermediate profes-
sional titles and work in private school for more than 3 years, or at least have
master degree.
In Hubei Province, the local government encourages private universities to build
public rental housing for staff on their own land in accordance with the city
planning and land planning. The staff can enjoy the preferential policies of the local
public rental housing. Private universities should pay social insurance and housing
fund for their staff based on the relevant provisions.
In Xiamen City in Fujian Province, the local government encourages private
universities to improve the salary system, explore the annual salary system, and
provide a supplementary pension for the outstanding teachers, so as to improve the
teachers’ retirement pension.
In Guang’an of Sichuan Province, the local government has set up the regular
physical examination system and special subsidies of endowment insurance system
for private school teachers at both municipal and county levels. The schools,
individuals, and governments are required to share the guarantee mechanism of a
private school teacher in order to improve the retirement pension.
In Jiyuan of Henan Province, the local government subsidizes private school
teachers directly by paying 30% of the social insurance and housing fund based on
the city’s last years’ minimum salary standards.
The Xinjiang Uygur Autonomous Region requires bringing qualified teachers
into the urban housing security system of autonomous areas in order to address the
housing problems.
2. Bridge teachers’ retirement pension gap between private and public school
continuously. Shanghai appropriates reward funds to the staff in private uni-
versities with the pension system. Private universities in Shanghai paid 18
million RMB for teachers’ pension in 2013. Shanghai municipal government
allocated special funds for teachers. In order to improve the income of private
school teachers, the administrative department of education in Shanghai links
the income of full-time staff with tuition fees and profits, sets the certain ratio
requirement, which is regarded as the important evidence for the special funds to
support private schools approved by the government.
7.1.5 Encourage Teachers in Private and Public Schools

to Help Each Other to Promote Personnel Rational
Flow
In order to improve the private school’s teacher quality, local governments have
formulated various policies to promote private and public school teachers’ rational
flow.
In Guangdong Province, the local government is exploring how to strengthen
teachers’ exchange between private and public schools. Among them, the Guangzhou
administrative department of education has carried out “Project of Guaranteeing the
Rights and Interests of Private School Teachers,” and established a two-way flow
system between private and public schools. The administrative departments of edu-
cation at all levels are required to send a certain portion of outstanding administrators
and teachers from public schools to help the teachers in private schools.
Simultaneously, the local government creates opportunities for private school
teachers to work and learn temporarily in public schools. For example, Shantou (a
city in Guangdong) administrative department of education has sent excellent public
school teachers to take a temporary post in private schools. In Maogang District of
Gaozhou, some public school teachers have been selected and sent to teach in private
schools, those teachers keep their original public school identity.
In Hubei Province, the educational authority has established a reasonable
mechanism of teachers’ flowing between private and public colleges or universities.
This mechanism encourages teachers to help each other by sending excellent
administrators and teachers from public school to work or teach temporarily in
private schools. Meanwhile, administrators and teachers who work in private col-
leges or universities, will keep their original identity, and their organizational
affiliations are still in public schools.
In Guiyang of Guizhou Province, the administrative government has innovated
the mechanism of teachers’ flowing and management between private and public
schools, sharing highly qualified teachers. Public school teachers help teaching in
private schools, will keep their original identity, their organizational affiliations,
their social insurances, etc. Private schools are responsible to pay the salaries and
the relevant allowances. Voluntary public school teachers who apply to teach in
private schools will be admitted to their previous schools. Simultaneously, they
should register and record both in relative educational department, and the human
resources and social security department. The employing schools are responsible
for paying salaries. Social insurance will be conducted in accordance with the
relevant provisions, their organizational affiliations will be transferred to the per-
sonal management department; their original salary standard will be taken into
account as the basis to get salary raising, position promotion, professional title
assessment and retirement pension; retirement pension will be calculated and paid
according to those of public schools. Teachers, whose contracts do not get renewed
after the expiration and would like to work in public schools will be treated equally
when public schools recruit new teachers.
In Fujian of Xiamen Province, the administrative department of education has

established a mechanism of teachers’ flowing between private and public univer-
sities after the continuous pilot policy experiment. The mechanism sends teachers
and administrators to conduct regular work or teach temporally, their original salary
and social insurance are kept intact. When the contract expires, they can still return
to their previous schools. Some outstanding young teachers in private universities
will be sent to study and work in public universities regularly, whose salary, social
insurance, and housing fund are still paid by their previous schools.
In Yiwu of Zhejiang Province, the local government has smoothed away the
institutional obstacles of teachers’ flowing between private and public schools. The
local government also guarantees the employers’ autonomy and encourages
teachers to flow ordered between private and public schools. The management of
organizational affiliation has been innovated to guarantee teachers’ ordered flow
between private and public schools, talents recruitments in private schools as well.
Teachers who teach in private schools and with previous institution’s identity will
keep their previous institutional identity. Teachers with previous institutional
identity, whose contracts do not get renewed after the expiration and would like to
work in public schools can apply to work in public schools again.
7.1.6 Carry Out the System of Personnel Agency, Increase

Teacher’s Promotion Opportunities
According to the current policy, local personnel service agencies attached to the
government, for instance, local Personnel Bureau or Personnel Service Center,
deputize private school teacher’s personnel management, professional title assess-
ment and recruitment. In addition, local governments try to expand the service areas
of personnel service agencies so as to help private school’s teacher in every aspect,
such as teacher qualification recognition, professional qualification appraisal, sci-
entific research project application, teacher evaluation, teacher’s length of service
calculation, etc.
In Shanghai, the administrative government of education takes priority to bring
the personnel management of private colleges into the whole city’s personnel
management category. Shanghai has established a mechanism to guarantee the
equality. Private college teachers are equal to public college teachers in professional
title assessment, reward assessment, application for scientific research projects,
teachers’ training, etc.1
In Guangdong Province, the local government has established the complete
system of personnel management for private primary and secondary school
teachers. Guangdong explores the independent management system based on the
1
Shanghai Education Committee: Report on Promoting Classification Management of Private
Education in Shanghai [Z] (2014).
principle of territorial management. The above acts aim to guarantee the private
school teachers’ professional development. Moreover, it is clear that private schools
should allocate a certain proportion of funds for teachers’ training. At the same time,
education, human resources, and social security departments should incorporate
private schools into the teachers’ training comprehensive planning. Among them, the
Guangzhou City government has come up with private school teacher file’s
trusteeship system. For example, the personnel services and management center is
entrusted to manage the private school teachers’ personnel files in Baiyun District,
and the finance department pays the cost. Besides, Guangzhou is implementing The
Project of Guaranteeing the Rights and Interests of Private School Teachers. The
project requires educational departments and human resource and social security
departments at all levels to incorporate private schools into the unified management
system, the teacher-related affairs such as the qualification recognition, professional
title assessments, scientific research project application, and teacher appraisal. It is
required to strengthen private schools’ teacher training, and the training cost-sharing
system should be implemented rigorously as done in public schools. Principals and
teachers in private schools and private kindergartens will be fully integrated into the
training system. There are also needs for the research on exploring the feasible modes
of teacher training in private schools. The district-level government (county-level
city) should guarantee the teacher training budget. Private schools are supposed to
guarantee the budget and time allocated for the training of principals and teachers
based on regulations, and complete the required training tasks.2
In Zhejiang Province, the local government explores an innovative teacher
service management system to facilitate private school teachers’ rational flowing.
The system requires the personnel service agencies carry out the personnel work
actively, and help private school teachers in aspects of professional title appraisal,
household migration, social insurance transformation, labor relation connection,
etc.3 In Yiwu City, the local education authority put private and public school
teachers into one teacher training program with the same contents, the same
requirements, and the same treatments, and by doing this it promoted teachers’
professional development. Private school teachers have their own performance
evaluation index system, and the independent work competition, individual
appraisals, and other indexes.4
In Chongqing, the education department has explored to coordinate a system of
strengthening teachers’ team building in private primary and secondary schools.
Chongqing requires the district and county governments be responsible for private
primary and secondary schools’ teacher’s all staff training, the municipal govern-
ment is responsible for the training of private primary and secondary school’s
2
Guangzhou Municipal People’s Government: Proposals on Implementing “Project of
Strengthening Teachers’ Team Building” (2013).
3
Zhengjiang Provincial People’s Government: Proposals on Promoting the Healthy Development
of Private Education (2013).
4
Yiwu Municipal People’s Government: Proposals on Promoting the Healthy Development of
organizers, administrators, and excellent teachers. Simultaneously, there is no dif-

ference between the private and public school teachers of the professional titles
recognition.5
Hubei Province stipulates that the years spent for teaching and payment period
of private college staff shall be calculated continuously if they meet the require-
ments of the state when they change their jobs, and their personnel relations are in
government-designated personnel agency. Private college teachers are equal to
public college teachers in the aspects of qualification recognition, professional title
appraisals, performance evaluation, project application, excellent individual
appraisal, international communication and exchange, etc.6
In Xiamen of Fujian Province, the municipal talent service center is responsible
for the personnel relations and archives management of private college teachers, the
municipal talent service center should instruct the entrusting private colleges to do
well in provincial teachers’ performance evaluation. When private college teachers,
whose personnel relationship is in the Municipal Personnel Service Center or other
agencies designated by the government, want to change their jobs, their years spent
for teaching and seniority will be calculated continuously.7
Kaifeng of Henan Province has proposed that private school teachers have the
same rights as public school teachers in teacher training, professional title appraisal,
award, and research project approval. Teachers working in private schools shall sign
contracts with their employers. Personnel service agencies of human resources and
social security departments at all levels will manage their personnel relationships and
archives. When state organs, enterprises, and institutions, recruit teachers, and those
teacher’s personnel relationships are managed by personnel service agencies, their
years spent on teaching and seniority shall be calculated in accordance with the
relevant regulations of the municipality, province, and state government.8Private
schools are responsible for paying the social insurance for their teachers.
7.1.7 Purchase Educational Services and Strengthen

the Team Building
The purchase of educational services has become a new measure to strengthen

teachers’ team building, and guarantee the private school’s rights and interests.
5
Chongqing Education Commission: Proposals on further Promoting the Development of Private
Primary and Secondary Schools (2013).
6
General Office of Hubei Provincial People’s Government: Proposals on Promoting Private
Higher Education (2013).
7
Xiamen Municipal People’s Government: Proposals on Promoting and Regulating the
Development of Private Higher Education (2013).
8
Kaifeng Municipal People’s Government: Proposals on Promoting the Private Education
(2014).
Local governments have actively explored various approaches of subsidies, student

loans, fund awards, donations, incentives etc.
The Shanghai Municipal Education Commission implements the teacher training
project in private colleges and universities, and has continuously invested the
special funds of approximately 20 million RMB each year to strengthen young
teachers and administrators’ training in private colleges and universities, supporting
them to study overseas, do scientific research, and the practice of industry–uni-
versity–research cooperation.
From 2012 onwards, the Shanghai Municipal Education Commission has
invested special funds annually to strengthen the private colleges’ young teachers in
and management cadres training, support young teachers in private universities to
study abroad and conduct scientific research.9
Chongqing Municipality stipulates that the county government may purchase
educational services, private primary and secondary schools entrusted with the
compulsory education tasks can appoint public school teachers in accordance with
the teachers and students’ ratio. Many high-qualified teachers in public school
teachers will be sent to private primary and secondary schools, it aims to build
private schools’ teacher profession by doing this. The schools should be the dis-
tinctive or model private schools or private schools organized by donation, and
those of which the organizers do not require a reasonable return, which aims to
support the team building of excellent teachers.10
Futian District in Guangzhou allocates special funds to build excellent private
schools’ teachers and principals’ studios. Huizhou makes no difference in principal
training between public and private schools. The municipalities, such as
Guangzhou, Shenzhen, Zhongshan, and Heyuan have allocated special funds to
train private school leaders and sponsors.11
In Xiamen of Fujian Province, the local government brings the full-time
teachers, administrators, and counselors of private colleges into the Project of
Improving Teachers’ Quality and Teaching Skills, implementing this policy in
private higher vocational colleges and universities, making overall arrangements for
teacher training and pedagogy research. The most excellent young teachers in
private colleges will be selected to pursue the professional master degree by the
means of entrustment. Teachers in private colleges are encouraged to combine the
scientific and technological innovation with the industry and education cooperation
activities. In addition, they will get corresponding support in scientific research
project, project application, project appraisal, scientific research finding transfer,
financial allocation of research funding, etc. Private colleges are encouraged to
recruit excellent teachers. The qualified teachers will be brought into the municipal
9
Shanghai Education Commission: Notice of Implementing Project of Strengthening Teachers’
Team Building Program in Private Colleges and Universities (2012).
10
Chongqing Education Commission: Proposals on Further Promoting the Development of
Private Primary and Secondary Schools (2013).
11
Guangdong Provincial Department of Education:Report on the Submission of Regulatory and
Characteristic Development of Private Education [Z].2014.
personnel plan, they enjoy some preferential policies, such as housing, children
schooling, etc.12
In Yiwu of Zhejiang Province, the local government has established a govern-
ment funding system for purchasing educational service for the non-profit private
schools, which is helpful to implement the teachers’ social security policy. Private
schools which pay social insurance for teachers should take the priority. Students at
qualified private schools will get a subsidy by less than 30% of quota public funds
per student in the equivalent public schools.
Based on the theoretical analysis and understanding about the guarantee of
teachers’ rights and interests in private schools, some areas have carried out
practical exploration and policy adjustment on the basis of relevant theories, the
practice has some achievements. The main achievements are as follows:
1. Teacher’s status is raised because the organizational dualistic structure of “in the
institution” and “out of the institution” does not exist anymore. As a whole, the
status of teachers in private schools is raising continuously. Raising the status of
teachers in private schools involves not only the education system, but also the
government administration departments such as the department of organiza-
tional identity management, department of household registration management,
civil affairs department, human resources, social security departments, etc.
Therefore, it is necessary to standardize the internal and external policies of the
educational system while raising teachers’ status.
Regarding central government’s laws and regulations, Law of the People’s
Republic of China on Teachers stipulates that “every level’s government shall take
measures to protect teachers’ the lawful rights and interests of and raise teachers’
social status,” it advocates “the whole society should respect teachers.”13 The
thirty-third article of Law of the People’s Republic of China on Education also
stipulates that “the state protects the lawful rights and interests of teachers,
improves the working and living conditions of teachers, and raises the social status
of teachers.”14 People’s Republic of China Private Education Promotion Law
specifically aims to “ensure the legitimate rights and interests of teachers in private
schools,” and “the teachers in private schools have the same legal status as those in
public schools.”15 In 2010, the National Mid-Long Term Plan of Education
Development proposed to “implement the equal legal status between the private
schools, students, teachers and public schools, students and teachers in accordance
with the law.”16 In order to implement the educational clauses of the National Mid-
12
Xiamen Municipal People’s Government: Proposals on Promoting and Regulating the
Development of Private Higher Education (2013).
13
National People’s Congress: Law of the People’s Republic of China on Teachers (1993).
14
National People’s Congress: Law of the People's Republic of China on Education (1995).
15
National People’s Congress: Law of the People's Republic of China on the Promotion of
16
The CPC Central Committee and the State Council: The National Mid-long Term Plan of
Education Development (2010).
Long Term Plan of Education Development, the Ministry of Education issued the
Proposal on Promoting Healthy Development of Private Education by
Encouraging and Guiding Private Capital to Get into the Field of Education in
2012 (the 22 Proposal in short). The 22 Proposal requires that “the relevant
departments checkup and rectify all kinds of discrimination policies of private
schools. The regulations, policies and practices, which are incompatible with the
laws of promoting the healthy development of private education should be
removed. Private schools and public schools enjoy the equal legal status, which
shall be implemented to guarantee the lawful rights and interests of private schools
as well as other stakeholders”.17
According to The 22 Proposal, private college’s teachers enjoy the equal status
to their counterparts in public schools in the internal education system. However,
some remained legal obstacles lead to weakening private college teachers’ status
and damaging their rights and interests, especially for the legal person attributes of
private colleges involved in organizational management and human resources and
social security. Therefore, in the forthcoming proposals on promoting the further
development of private education, how to regulate the implementation of policies
out of the education system is an important aspect to raise the status of teachers in
private colleges.
In addition, some typical provinces and cities try to break through the forbidden
zone of the dualistic structure about the status of public and private school teachers.
For example, in order to solve the problem about the status of private school
teachers, some cities in Zhejiang Province, such as Wenzhou, Ningbo, Quzhou,
etc., bring non-profit private school teachers into the “private institutions” or “in-
dependent institutions” when they design a policy. Meanwhile, those cities raise the
status of private school teachers by implementing the relevant policies.
2. Teacher’s salary is raising, China establishes a multilevel teacher salary guar-
antee system. Private school teachers’ salary has increased gradually, and the
social insurance system is transforming from providing “welfare” to providing
the multilevel welfare, including “social insurance,” “supplementary endow-
ment insurance,” “housing provident fund,” and “teachers’ pension system.”
In 1993, Law of the People’s Republic of China on Teachers stipulated that
“salaries of teachers in schools which run by social resources should be determined
and guaranteed by the organizers,” and “the average salaries of private school
teachers should not be lower or even higher than state civil servants.” In addition,
teacher’s salary needs to rise gradually.18 It can be seen that protecting private
school teacher’s salary is the key point. People’s Republic of China Private
Education Promotion Law proposed specifically “private schools are supposed to
17
The Ministry of Education: Proposals on Promoting Healthy Development of Private
Education by Encouraging and Guiding Private Capital to Get into the Field of Education
(2012).
18
National People's Congress: Law of the People's Republic of China on Teachers (1993).
guarantee the pays and benefits of their staff in accordance with the law.” Private
school also needs to pay teacher’s social insurance. It is the first time that social
insurance appeared in the legal provisions. In order to further enhance the social
security of private college teachers, the concept of supplementary endowment
insurance came into being in 2007. The State Council issued the Proposal on
Strengthen the Team Building of Teachers in 2012, which claimed, “private
schools should not only fulfill the promise on salaries and benefits increment, but
also pay enough social insurance and housing provident funds for the teachers
according to the relevant law and regulations. At the same time, private schools are
encouraged to bring supplementary endowment insurance and medical insurance
into the social insurance system of the teachers.” The 22 Proposal, issued by the
Ministry of Education in 2012, proposed “to put the salaries and benefits of private
school teachers into effect in accordance with the relevant provisions by all means,
such as guaranteeing teachers’ salaries and benefits, paying social insurance and
housing provident funds, and adding supplementary insurance for the teachers.
With the support of concerned departments, the local government should take
measures to establish the annual salary system, which are supposed to improve the
retirement pension of private school teachers, by the means of setting up a system
of special pension subsidies.”19
Based on the analysis of the legal regulations on the private school teachers’
welfare, the keywords, such as “pay and status,” “social insurance,” “supplemen-
tary endowment insurance,” “housing provident fund,” “private school teacher’s
annual salary system,” etc., have emerged in succession. Simultaneously, regula-
tions and policies stipulated more detailed provisions. The welfare policy of private
school teachers is transforming from the single wage system to a multilevel social
security system.
3. The social security system for teachers is improving, and the gap between public
and private schools is shrinking. At present, the social security mechanism with
responsibilities shared by the government, schools, and individuals has been
established initially.
The coexisting social security system of public and private teachers is the key
problem that private education needs to focus on. In this regard, many provinces
and municipalities have issued new legal provisions to establish and improve the
multilevel social security system, exploring the implementation of systems on
endowment insurance, housing provident fund, occupational annual salary system,
enterprise annual salary system, etc.
In the practice of guaranteeing the social security of private school teachers, the
government has formulated the value orientation for private education regulations
and policies. The value changes from encouraging, guiding, and standardizing to
supporting and participating actively. The roles of stakeholders, such as the
19
The Ministry of Education: Proposals on Promoting Healthy Development of Private Education by
Encouraging and Guiding Private Capital Gets into the Field of Education (2012).
government, sponsors (investors), teachers, etc., take effects constantly. Besides,

they have reached a consensus and sought common goals. Therefore, China
establishes some real foundations, which breaks through the coexisting social
security system of private and public school teachers.
The society paid attention to the social security problems of different groups in
the past, but we need to focus on the social security of public and private school
teachers currently. The construction of social security system should break through
the limitations of only servicing public schools, and tend to focus on all kinds of
schools’ teacher. By doing this, the coverage of social security can be expanded. In
order to keep pace with the progress and development of Chinese economy, society,
and education, it is necessary to guarantee the rights and interests of all teachers
especially private school teachers. In general, it is supposed to provide social
security for teachers according to their professional identities rather than the attri-
butes of the schools, in which they serve to, which follows the trend of China’s
social security reform in the future as well as the development of the whole society.
For instance, teachers in schools with private legal person identity and enterprise
legal person identity are supposed to enjoy the same kind of social security as those
in public schools, on the premise of that they participate in personnel agency.
In the aspect of social security provision for private school teachers, teacher’s
rights and interests in private schools have not been guaranteed, and it still remains
the biggest problem, this problem makes teacher worries about mostly. For
instance, there is still a big gap in retirement pension between private and public
school teachers. Therefore, the realization of social security plays a great role in
guaranteeing teachers’ rights and interests in private schools.
4. Pursuing further study has become a trend among teachers. The teaching pro-
fession has made progress in professional development by further study.
Teachers’ professional training, application for the scientific research as well as
the education exchange and visiting are the basis of professional title appraisal.
According to the existing policies, the space for teachers’ professional devel-
opment in private schools is constantly expanding. In addition, the existing laws
and regulations clearly stipulated the rights for professional title appraisal and
professional development, the corresponding system of integrated rights is
going forward in the recognition of qualification, further study and training,
application for the scientific research, excellent individual appraisal, interna-
tional communication, etc.
(1) Many provinces and cities innovated the service mode of teachers’ man-
agement in private schools by establishing personnel agency system. Personnel
agencies affiliated to the government, offer personnel services to guarantee that
private school teachers enjoy the same rights as their counterparts in public schools.
The rights include professional title appraisals, residence migration registration,
social security transfer, the labor relation connection, etc. In addition, private school
teacher’s appraisal, award evaluation, and scientific research project application are
open. Private and public school teachers are in the same unified planning for
training and assessment. Programs, such as studying home and abroad, industry–
teaching–research cooperation, etc., have covered all of the private colleges in

Shanghai and other cities.20 Guangzhou Province is exploring to establish an
encouragement and supervision mechanism of principal training and teacher con-
tinuing education. Private schools are supposed to strictly implement the training
cost-sharing policy which the same as in public schools. It is required that private
schools provide principals and teachers with funds and time to ensure they complete
the required training task.21
(2) Provisions on professional title appraisal and recruitment of private school
teachers are much clearer in the existing laws and regulations. Teacher’s rights,
such as qualification recognition, further study and training, scientific research
project application, excellent individual appraisal and international exchange, etc.,
are guaranteed. Due to the limitation of the existing personnel management system,
there are still obstacles to guarantee the rights and interests of private schools in
professional title appraisal and recruitment, professional development, the qualifi-
cation recognition, and working years’ calculation. Although there are no formal
legal provisions on the professional title appraisal of private school teachers, the
issues on the professional title appraisal, professional training, and development are
drawing attention from the government and the society with the development of
private education. Chinese State Council issued Proposal on Strengthen Teachers’
Team Building in 2012, this proposal indicates that “private school teachers enjoy
the same rights as their public school’s counterparts, including the professional
training, professional title (position) appraisal, working years’ calculation, award
and social activities etc. By implementing those policies to guarantee private school
teacher’s rights.” Meanwhile, The 22 Proposal which was issued by the Ministry of
Education clearly stipulated that “private school’s teacher enjoy the same rights as
their public school’s counterparts, in the aspects of qualification recognition, pro-
fessional title appraisal, further study and training, scientific research project
application, excellent individual appraisal and international communication etc.”22
Aiming to solve problems of professional title appraisal and recruitment as well as
professional development in private schools, many private schools and the admin-
istrative departments of education try to explore some innovative solutions, mainly
focusing on the reform of personnel management system in education area. They
have figured out the personnel agency system for private school, which expands the
channels of professional title appraisal. Private schools, especially the corresponding
teachers, are granted the rights of professional title appraisal and personnel man-
agement. Supporting the private school teacher’s professional development of will
lay foundations for the professional title appraisal and recruitment.
20
Shanghai Education Commission: Report on Promoting the Classification Management of
Private Education [Z] (2014).
21
Guangzhou Municipal People’s Government: Proposals on Promoting the Development of
22
The Ministry of Education: Proposals on Promoting Healthy Development of Private
Education by Encouraging and Guiding Private Capital Gets into the Field of Education
(2012).
7.2 The Main Existing Problems
At present, the team building of private school teachers has made some achieve-
ments with the vigorous support of multilevel governments, but there are still some
prominent contradictions. Some related problems are even intensified because the
problems concerned with teachers’ rights and interests are not solved timely and
effectively. Many reasons are the cause for this phenomenon. First, the stakeholders
do not take responsibilities. When the stakeholders confront conflicts and problems,
they usually choose to keep away from the problems and take the wait-and-see
attitude or even prevaricate the problems. Second, the stakeholders try to deal with
contradictions in the wrong way, and solve the new problem by the old method.
Third, the system of guaranteeing the rights and interests of private school teachers
is not perfect and some relevant policies have not been implemented in long term.
However, they are not the fundamental reasons. The fundamental reasons are as
follows. Firstly, there is a lack of a classified management system. Secondly, it is
not clear about the school type. Thirdly, regarding teachers’ status, and the corre-
sponding rights protections, the policies are not implemented either by the insti-
tutions, or by those the enterprises. When the system of classified management on
private schools will be established in the near future, the basic rights and interests of
for-profit and non-profit private school teachers will be guaranteed. In addition, a
variety of measures will be taken in accordance with school types and attributes.
7.2.1 The Private School Teachers’ Low Status Caused

by Their Unclear Identities
Currently, working in private schools are not a preferred choice for many teachers,
especially private colleges and universities. Candidates, who cannot be admitted by
public universities with high qualities or the key universities, have no choice but to
work in private schools. Most college graduates are reluctant to work in private
universities. This is beyond dispute that private school teachers have the lower
social status than public school teacher, and the statuses are not equal by the law.
Some private school teachers say, “I have a sense of discrimination without
approval when out of the campus. When I stand with public school teachers, I have
a sense of powerlessness and ‘inferior’.”
1. The government does not support the team building and rights of private school
teachers vigorously. School owners (investors) and administrators do not realize
the importance of teacher’s social status and the roles the teachers played. The
society and the public should learn more about teachers’ social status. Some
local governments and administrative departments of education do not pay
attention to teachers’ social status and guarantee private school teacher’s rights
seriously. It is prevailing that the educational authorities still hold the opinion
that “private education is just the expedient transition as a supplementation to
public education. Private school teachers play the roles of self-employed

workers in the 1980’s, who are the same as the employees in an enterprise and
have no importance.” The society and the public do not really understand a
series of systems of private schools such as management system, operation
system, charging standard, etc., regarding private schools as private industry
owned by sponsors (investors). Thus, private school teachers are seen through
the rose-colored spectacles, private school teachers are regarded as “employees
of their boss and their enterprise.”23
2. The legal attribute of private schools is not clear, which affects teachers’ status.
The fundamental reason is that the attribute of legal person in private school is
vague as private nonenterprise legal person, and the contradiction between the
existing laws and regulations. The General Principles of Civil Law in China
puts the attributes of legal persons into four categories: enterprise as legal person,
official organ as legal person, institution as legal person, and legal person of social
organization.24 Among them, institution as a title of social organization is peculiar
to China, “which refers social service organizations organized by the state organs
or other organizations using state-owned assets for the purposes of utility, being
engaged in education, science and technology, culture and health activities.” The
institutions in China mainly are divided into three categories: institutions bearing
administrative functions, institutions engaged in business, and institutions
engaged in public service. Judging from the nature of the legal person, the public
schools obviously belong to institutions in China. Therefore, formal teachers
appointed in public schools have the institutional nature. That is to say, they are in
the state institution, belonging to the “cadre status.” “Positions in or out of the
state institution” is a special term in China, referring to the relative management
departments at all levels determine the establishment of organization, the quota of
personnel, the distribution of duties, and the amount of financial allocation. The
financial departments at all levels allocate funds according to the number of
people in the state institution; the personnel departments making an adjustment on
workers do the same. Positions in or out of the state institution have two cate-
gories: administrative positions (civil servants) and institutional positions.
Therefore, “positions in or out of the state institution” is an important budget
concept, which provides the public positions. Public school teachers belong to the
group in the state institution, whose salaries and social insurance are totally or
partly allocated by the financial departments. It is much more stable, as the
equivalent of “a secure job.” “Positions in or out of the state institution” essen-
tially means the allocation of resources.
Comparatively speaking, the relevant laws and regulations have not clearly
defined which type of legal person the private school belongs to. According to the
four kinds of legal person defined by “institution” and The General Principles of
Civil Law in China, private schools do not belong to legal persons for official
23
Jing (2014).
24
National People’s Congress: The General Principles of Civil Law in China (1986).
organs for institutions and for social organizations. People’s Republic of China
Private Education Promotion Law defines private education as a public welfare
without making any profit. Thus, private schools cannot simply be registered as a
corporation in practice. At present, most private schools engaged in academic
education (including schools with certain profit-making nature), thus, they register
as “private non-enterprise organization in the Civil Affairs Department.” Actually,
the provision does not practice the General Principles of Civil Law in China, so the
legal person of private schools cannot get the legal recognition, and the policy that
private and public school teachers have the equal legal status cannot be put into
practice. Therefore, the fundamental causes, for the rights of private school teachers
cannot be achieved and guaranteed, are the vague nature of private schools as
private nonenterprise organization, as well as the mutual contradiction between the
relevant existing laws and regulations.
In addition, how to realize the status and rights of private school teachers
involves a number of stakeholders and departments, so it is hard to be truly
achieved in the absence of effective coordination.
7.2.2 Private School Teacher’s Salary Is Much Lower

and Their Social Security Is Insufficient
With the gradual implementation of the educational preference development

strategy, the salary gap between the private and public school teachers is expanding
on one hand. In the early stage of development, private schools can guarantee high
salary for their teachers with the flexible market mechanism and the sufficient
private capital. However, with the increment of national financial education funds,
public school’s fiscal appropriation is trending up, so the performance pay of public
school teachers is soaring up visibly. Private school teacher’s salary advantage level
out gradually, even lower than the public school teacher’s salary and the wage gap
between private and public school teachers is increasing. On the other hand, there
are some defects of private school teacher’s salary design, which are not suitable for
the new situation and meet new requirements. After analyzing the cases on the pay
system of private college teachers, some researchers put forward that “the current
design on the pay system of private university teachers is unreasonable, it seems
quite arbitrary and artificial. The welfare compensation system is unscientific,
which is hard to practice and develop sustainably. As there is a long way to bridge
the big gap between different private schools and between different groups of
teachers, ‘equal work equal pay’ cannot put into practice. Due to lacking of external
competitiveness, there is not a strong system of salary incentives. Although teachers
bear a heavy workload, and need to do much work, their salary level is relatively
low.”25 Obviously, because of the absence of salary and social security, private
25
Liu (2011).
school teachers generally lack a sense of occupation security. Currently, private

school teacher plays a more and more important role in the education, but they
cannot get the same salary and social security as their public school counterparts.
Although they work hard, they can hardly get any professional training.26
1. In the process of private education development, private school sponsors
organize schools for various purposes. Sometimes teachers are not highly val-
ued. There are no practical measures to build teachers’ team and improve tea-
cher’s salary and benefits. Private school’s teachers will have a sense of unstable
and unsafe. It is impossible to ignore the existence of for-profit private educa-
tion, some sponsors (investors) pay much attention to maximize profits, it will
lead to the loss of teachers’ welfare. At the same time, some private school
organizers (investors) lack start-up funding and the follow-up funds. Owing to
the shortage of school-running funds, they cannot spend more money on
teachers’ welfare. Some schools cannot even pay full salaries for their teachers
without delay, and pay the minimum social insurance premiums in accordance
with the lowest standard. It will lead to the serious benefit infringement of
teachers.
2. Public and private school teachers participate in social insurance by the “double
track” system, which has always been a bottleneck problem in the development
of private education. At present, there are five major types of social insurance in
China: endowment insurance, medical insurance, unemployment insurance,
industrial injury insurance, and maternity insurance. Endowment insurance is
the most important one in the social insurance system, which can draw attention
from the society. Based on the analysis of the existing date, private school
teachers concern the retirement pension mostly. Presently, public school
teachers belong to the state organization, whose social insurance premiums are
paid according to the institutional standard. While, private school teachers
belong to or equal to the enterprise employees, who need to pay higher social
insurance premiums but draw a lower pension after retirement comparing with
public school teachers. Then, what are the differences between endowment
insurance paid by public and private school teachers? Some analysts believe that
“private school register as private non-enterprise unit, whose teacher pays the
social insurance premiums according to the standard of enterprise. Compared
with public schools at the same level and the same type, their retirement pension
is lower than the public school teacher’s retirement pension.” Scholars in private
education agree with this opinion. Professor Wu Hua in Zhejiang University
says “if the private college teachers participate in the endowment insurance
system for enterprises, the insurance standard is the average salary of employees
last year, among which individual pays 8%, and enterprise pays 20%. If they
keep paying for 20 years, they can only draw the pension as the same as 36% of
the salary before retirement. Even if they keep paying for the whole 30 years,
they can only draw the pension as the same as 44% of the salary before
26
Jing (2014).
retirement. However, if the private college teachers participate in the endow-

ment insurance system of institutions, referring to the public college teachers at
the same level and in the same type, they will draw the pension as the same as
70% of the salary before retirement for 20 years’ payment, almost 100% for
30 years’ payment. Therefore, it is concluded from the comparison that public
and private universities participate in two different endowment insurance sys-
tems, and the amount of pension they can draw after retirement varies a lot,
nearly more than one time.”27
3. There are many illegal practices in private school teacher’s recruitment for
lacking of supervision and accountability mechanisms. It is a common phe-
nomenon of increasing teacher’s working hours and workload irregularly, and
teacher’s salary and social insurance system should be improved. For instance,
private university teachers in Shanghai have low academic diplomas, low pro-
fessional titles, and low incomes. However, the amount of public university’s
financial allocation is increasing gradually, and teacher’s welfare, especially the
retirement pension in public university is much higher than that of private
universities. After the practice of performance payment system in primary and
secondary schools, the original income advantage of private primary and sec-
ondary schools have gradually leveled out, which directly affects private school
teachers’ enthusiasm and the stability. Although Shanghai has implemented the
teachers’ annual salary system and some other related policies, such as
encouraging sponsors to increase investment and improve teachers’ welfare,
teacher’s right security system has not been solved fundamentally due to the
nature of legal person of private schools.28
In addition, there is no effective channel for public finance to support private
school. It is one of the factors that damage the private school teacher’s welfare and
social security. In recent years, although the central and local governments strengthen
the support to private school, public finance still lacks the channels to support private
school teachers’ right and welfare and the development of the private school, because
there is no certain section related to private education in the public budget.
7.2.3 There Are Still Many Obstacles of Professional Title

Appraisal, Teachers’ Professional Development Is
Limited
Compared with public schools, the teacher’s overall quality and ability in private
schools is low, which limits private school teacher’s professional title appraisal and
professional development. Due to the historical reasons, some private schools have
27
Jing (2014).
28
Shanghai Education Commission: Report on Promoting the Classification Management of
Private Education [Z] (2014).
their own full-time teachers, but those teachers’ qualifications and professional titles
are seriously low. Teachers with senior and intermediary titles only take up a small
proportion, which severely restricts teaching profession’s professional development.
1. Compared with the public school teachers, there are no effective professional
development channels for private school teachers in many aspects, such as
professional title and position appraisal, award evaluation, scientific research
project application, teacher exchange, training, etc. Sometimes, teachers in
private schools may get obvious discrimination. Most private school’s principals
and teachers have less access of professional training, their knowledge and
teaching philosophy cannot be updated promptly, and the school management
and teaching level cannot keep up with the needs of social development. Those
will restrict private school development to a great extent. The professional
development activities such as teacher training, scientific research project
application, academic exchange, visiting, etc., are the basis for professional title
and position appraisals. However, the current discriminatory practices against
the professional development of private school teachers have occurred now and
then. A research by surveying teachers from 19 private colleges in Shanghai,
shows that 31.5% of the private university teachers and 47.1% of the private
college teachers did not do any scientific research project in the recent 2 years.
40.2% of the private university teachers, and 50.7% of the private college
teachers did not publish any academic paper. Only 4.3% of the private college
teachers published in more than 3 academic papers. 43.5% of the private uni-
versity teachers and 58% of the private college teachers did not participate in
any academic exchange activities. 71.5% of the full-time teachers of private
colleges did not participate in at least one teacher training.29 We can see it is a
truth that the private school teacher’s rights and professional development
activities are limited, because it is prevailing that private school teachers have
less opportunities to do scientific research, less academic papers published, less
exchange activities, and less trainings. Therefore, if we set the same standard for
private school teachers in professional titles appraisals as their public school’s
counterparts, it will cause a new inequality. Based on current policy’s imple-
mentation effectiveness, it is much harder for private school teachers to get a
professional title after strict appraisals comparing with public school teachers.30
2. Qualifications and criteria affect private school teacher’s professional title
appraisal and professional development. On the one hand, private schools lack
the right to appraise teachers’ professional titles. By the end of December 2012,
175 universities will have the right to evaluate professors as well associate
professors, and 123 universities will have the right to evaluate associate pro-
fessors, those universities are all public institutions. Private colleges have no
29
Xu and Gao (2013).
30
Jing (2014).
right to appraise teacher’s professional titles.31 On the other hand, the criteria of
professional title appraisal are unitary. For example, private colleges have the
similar criteria with public colleges in the aspect of teacher’s professional title
appraisal. The criteria include political conditions, working hours, teaching
qualities, foreign language, computer skills, academic papers and publications,
the number of research projects and the projects’ ranks and funds, etc.32 The
unified criteria for professional title appraisal do not reflect the particularity of
private schools and their teachers.33
3. Because the training funds for private school teachers are rather limited,
teachers’ professional development are solely based on their own power. On the
one hand, there are few training opportunities for teachers in private schools,
and the training content is not specific. On the other hand, most of the training
funds are paid by private schools, private schools can hardly get the public
financial support. Therefore, funding spent on teachers’ training, scientific
research, academic exchange, visiting, etc., contribute to teacher’s professional
development, can only rely on private schools themselves. In the case of
excessive dependence on tuition fees, it is hard for private schools to provide
opportunities for teachers’ training based on the school’s own economic ability.
Once the schools are incapable and lack motivation, it will affect teacher’s
professional development.
7.2.4 The Organizational Mechanism of Teacher’s

Democratic Participation Is Incomplete,
and Teacher’s Democratic Participation
Opportunity Is Limited
At present, private school teacher’s right of participating school democratic man-

agement is far from a truth, a lot of teachers think that the school’s humanistic care
is not enough, their identity is not strong, the mechanism of school management
participation and the participation channels are imperfect. Some private school
teachers say “as a grassroots teacher, my main task is teaching, I rarely have
opportunity to participate in school management. My school has only held once
teacher’s congress. The congress did not play a substantive role and became a mere
formality. Teacher has a small voice in school management.” From the provisions
of existing laws and regulations policy, the contents about private school teacher’s
31
The Ministry of Education:List of Colleges and Universities with the Rights to Evaluate
Professors and Associate Professors, 2012.
32
Zhao Heping: Academic Performance is the Core of Professional Title Appraisal, published on
China Social Science Daily, December 28, 2012.
33
Jing (2014).
rights and interests to participate in school’s democratic is of the least, these factors
are the reason why teacher’s democratic management rights have not fully realized.
1. The system of democratic decision-making and democratic management is
unsound. On one hand, the internal democratic decision-making system is
imperfect. With respect to the internal decision-making systems of private
schools, the provisions in the 19th, 20th articles of People’s Republic of China
Private Education Promotion Law, and the provisions in the 9th, 16th articles
of Regulations for the of Law of the People’s Republic of China on the of
Private Education Promotion Implementation Law have principle provisions,
but it is difficult to put into practice. The decision-making systems of many
private schools are imperfect for it is hard to find the relevant introduction of the
board of directors on their websites and even the duty officers. Although some
private schools have set up the board of directors, the composition of the board
of directors is not standard. The board’s responsibilities are not clear. The
decision-making process is not perfect and lacks standardization. Some directors
are unable to perform their duties, this will affect the democratic management of
private schools, access to democratic management is blocked at the same time.
On the other hand, because the mechanism of teachers participating in the
school democratic management is imperfect, there are fewer opportunities for
teachers to participate in school democratic management, teacher’s unwilling-
ness to participate in school democratic management is rather low. In addition,
teachers do not understand the roles of the staff congress and the labor unions,
the faculty meeting systems do not play a substantive role. Researchers surveyed
the teachers of five private colleges in Hunan Province, 50% of whom thought
they had no chance to participate in the school’s democratic management, while
another 50% of the teachers said they occasionally had the opportunity to
participate in the school’s democratic management. At the same time, about
70% of the teachers thought the school management was undemocratic, and
about 60% of the teachers thought that the school democratic management
became a mere formality.34 In 2012, the statistics showed that 98% of the public
schools have established the faculty meeting system, but only about 40% of the
private schools have labor union system in China.
2. The philosophy of school management and the internal management system are
unscientific. Some sponsors (investors) regard the private school as private
industry, so it is common to find the familial management, paternalism, and
enterprise management in private schools. Some sponsors regard private schools
as a corporation subsidiary, and ignore the private education development law.
Therefore, the school administrators who are directly employed by the board of
directors cannot effectively implement the management functions, and the tea-
cher’s rights of speaking and participation in school democratic management
cannot be fully respected. The entities of private schools are more complex
34
Zhang Wenmei: Research on the Protection of Teachers’ Rights and Welfare in Private
Universities, Scientific Dissertation of Hunan Normal University, 2011.
because the relevant laws and regulations do not clearly stipulate the rights and
responsibilities between the sponsor (investors) and operators (administrators),
and there are no reasonable regulations to guarantee and restrict the behavior of
sponsors and administrators in the leadership system. Thus, private school
investor’s family invests in private schools; the phenomenon of familial man-
agement and paternalism is wide spreading, so private education becomes
family-owned education. Familial management of private education is similar to
the early private enterprises, which affects the healthy development of private
schools seriously.
In addition, the willingness of private school teachers to participate in the school
democratic management and the sense of belongings also affect the realization of
their rights and welfare. An administrator in private school once said, “we are
considering how to cultivate teacher’s sense of belonging. Our school has made
many efforts, including improving teachers’ welfare and enriching their cultural
activities on campus. We aim to encourage teachers to participate in school man-
agement, but it brings little effect. If teachers have no sense of belonging and
responsibility, they will not really participate in and contribute to school
management.”35
7.3 Theoretical Basis and Practical Reference
7.3.1 Recognition of Teachers’ Rights and Interests

in Private Schools
At present, there are three definitions of rights and interests. The first one is that
“rights and interests” are rights. “Rights and interests” are the inviolable rights
which people should enjoy.36 Some scholars believe that it is illogical to regard “the
legal rights and interests” of Law of People’s Republic of China on Administrative
Procedure as two aspects of rights and interests. Because if the violated rights and
interests are rights if they are protected by the Administrative Procedure Law. If
the violated rights and interests are out of the protection of the Administrative
Procedure Law, such interests would be excluded from the provisions of the
Administrative Procedure Law, the connotation of “legitimate interests” should be
rights.37 The second opinion is that “rights and interests” are not equal to rights.
“Rights and interests” include not only all kinds of rights that the natural person and
legal person shall enjoy, as well as the interests which they will retain, pursue,
obtain, be free of accountability, etc. When they exercise their rights, but also the
35
Jing (2014).
36
The Modern Chinese Dictionary, The Commercial Press, 1983.
37
Zhang (2001).
existing and future interests, which are inviolable. However, the rights and interests
are united in a profound way. “Rights are the effective interest adjustment mech-
anism, interests are the fundamental material which hide in the rights. The com-
bination of rights and interests makes the rights and interests united in the form of
form and content, and in the form of objectivity and subjectivity. Rights are the
legal expression, while interests are the objective contents.”38 Therefore, when we
study the rights and interests, we can only explore the realization of its interests
through the exercise of its rights. Studying the operation and realization of rights is
an important expressive form when we study on rights and interests. There are legal
rights and illegal rights, general rights, special rights, and other forms of rights
according to the different combination of rights and interests. The third point of
view is that “rights and interests” can be divided into rights and interests, respec-
tively. Some previous studies have shown that “rights and interests are the summary
of the legal rights, which are availed by the existing citizens, legal persons and other
organizations, and the corresponding interests gained currently and would gain in
the future.”39 “The legal rights and interests” refer to the social rights and interests,
which are owned by public. The legal rights and interests are recognized, and
protected by laws and regulations.40 Moreover, some researchers believe that rights
are statutory interests, and the interests are purely factual interests which are not
prescribed by law. Once the administrative action involves the factual interests, the
interests fall into the category of “legal interests”, namely “rights”.41 Starting from
the content and elements of the concept of teacher’s rights and interests in private
schools, this part considers that the rights and interests of private school teachers
can include both the legal rights of teachers and the demands of teacher’s individual
interests.
According to the analysis of the rights and interests of private school teachers,
rights and interests in this part refer to the legal rights and the teacher’s interest
demands. Private school teachers should enjoy their rights and interests in their
daily work. Rights and interests are the nation’s permission and safeguard for what
the private school teachers can do and what they cannot do, as well as the
requirement of others about what they can do or cannot do. The rights and interests
of private school teachers mainly include the teacher’s status, welfare guarantee,
professional title appraisal, and school democratic management participation.
Among them, the realization of status of private school teacher’s social status is the
approach to guarantee teacher’s rights and interests. The realization of teacher’s
social status refers that private school’s teachers have the same identity and status as
the public school teachers, which involves the essential relationship between the
government, schools, and teachers. Income guarantee is the material basis of private
school teacher’s right guarantee. Income includes salaries and welfare, all kinds of
38
Chen (2002).
39
Zhang (2000).
40
Gao (1997).
41
Jing (2014).
social insurances (including medical insurance, endowment insurance, maternity

insurance, unemployment insurance, and industrial injury insurance), children’s
schooling, housing security, etc. Professional title appraisal is teacher’s no-material
incentives. Private school teacher’s nonmaterial incentives include professional title
appraisal, working years’ calculation, promotion, project application, award,
training, etc. The democratic management refers to that the private school teachers
can participate in school’s important meeting, decision-making, supervision, and
management on the key issues such as constitution of the board of directors, making
school development planning, teaching reform, staff team building, financial bud-
get, and other important issues. Teachers’ unions, labor unions, and other organi-
zations are responsible for teacher’s participation in democratic management.
7.3.2 The Theoretical Basis for the Protection of Private

School Teachers’ Rights and Interests
7.3.2.1 The Organizational Equilibrium Theory
The Organizational Equilibrium Theory is one of the most important theories of

social system school. Organizational Equilibrium Theory was proposed by Barnard
Chester, and he is the founder of social system school at the same time. Barnard
defined the organization as a conscious coordination system of human activities or
sectors.42 Enterprises, universities, and governments are the familiar organizational
phenomena in daily life. By concluding the specific organizational phenomena,
Barnard presented an abstract organization, ignoring the various specific factors of
the differences. Barnard believes that the organizations have three elements in
common: common goals, cooperation intentions, and information communica-
tion.43 Common goals are essential to the establishment and existence of one
organization. Each member of the organization has different desires and goals, and
Barnard is bound to take some action to achieve his personal goals. However,
members of the organization also act on the common goals of the organization.
Without common goals, organizational member cannot accomplish their intention
to collaborate with others. Members do not know what efforts should be taken to
contribute to the organization, nor do they know what fulfillments they can achieve
from collaborative work. Collaborative intentions are the essential part of organi-
zational processes. Without the cooperative intentions, individuals could not make a
sustainable effort and contribute to the organization, let alone to organize and
coordinate different members’ behavior in an organization. The intensity of will-
ingness to cooperate among different organization members depends on their
contribution to collaboration and the comparisons between the incentives offered by
42
Barnard: Role of Professional Managers, Chinese Social Science Press, P59.
43
Xiangang Guo. History of Western Management Though. World Publishing Corporation, 2010.
the organization for their collaborative contributions. Information communication is

a channel for achieving common goals and accomplishing collaborative intentions.
Only by communication, the objectives of the organization and members with
different cooperative intentions can be really built. Without communication, dif-
ferent organizational members cannot generally understand and accept the orga-
nizational objectives, and the organization is unable to understand the member’s
intentions.
We can see that Barnard’s theory on organization is an open system. All
members of the organization are seeking a collaboration system to achieve a bal-
ance (that is to reach a steady state). They coordinate various internal and external
sectors to keep the whole system balance.44
The methodological foundation of Barnard’s Organizational Balance
Equilibrium Theory is the differences and relationships between the organizations
and members. This theory integrates the personal needs into the organizational
goals via social psychology and system analysis. It puts a certain organization into a
greater system of the society, clarifies the organization process and decision action
in management, and does a groundbreaking research on issues such as “commu-
nication,” “motivation,” “target,” “decision-making,” etc. Private schools are not
only an essential part of Chinese education but also an important part of social
organizations. To meet teacher’s personal goals and to protect teacher’s legitimate
rights and benefits are an important manifestation of the organizational efficiency
and viability of private schools. Organizational Balance Equilibrium Theory has a
good reference to the guarantee of the private school teachers’ rights and benefits,
and the improvement of private school’s quality as well. First of all, the internal
balance of private schools is a prerequisite to the development of a school. The
balance between the school as a whole and its administrators, faculty, students, etc.,
and the balance between the incentives offered by school and the contribution made
by its members are the main balance form. It is crucial to achieve personal goals and
maintain internal balance. Currently, it is the principal way to achieve personal
goals and guarantee private school teacher’s legitimate rights and benefits by
material incentives, such as reasonable benefits, salary security, performance bonus,
etc. However, the intangible incentives have not attracted enough attention and
have not been fully realized such as the professional title appraisal, teacher training,
school management participation, etc. How to make and take advantage of a series
of reasonable incentives to achieve the balance between the school’s common goals
and the teacher’s personal rights and benefits is an important issue which needs to
be studied. On the one hand, school’s common goals help to meet teachers’ per-
sonal goals and guarantee their legitimate rights and benefits; on the other hand,
school’s common goals will guarantee the healthy development of private schools.
Second, private schools are an essential component of the society. The healthy
development of the private schools and the sustainable development of education
will effectively maintain the internal balance of private schools. In addition,
44
Guo (2010).
teachers should adapt themselves to the policy environment, economic situation,

and the social demands. To guarantee private school teacher’s rights and benefits
effectively is the policy requirements of deepening the comprehensive education
reform, and it is helpful to encourage and guide social forces to set up schools.
Meanwhile, it gives full play to the role of market economy in allocating the
educational resources. Besides, it is a significant link for private schools to maintain
external balance. Third, Organizational Balance Equilibrium Theory takes
decision-making as the main research object, which has a main reference value for
the scientific decision-making on making and implementing the policy to guarantee
teacher’s legal rights and benefits in private schools. The study of private school
teacher’s rights and benefits protection must base on the framework design by
private schools, external factors, and private school teacher’s dynamic environment.
It asks to solve problems from the perspectives of development and systematic
analysis.
7.3.2.2 Stakeholder Theory
In 1963, the Stanford Institute (Stanford Research Institute) first proposed the
concept of “stakeholder”, which is defined as “the groups, without which the
organization cannot exist.”45 Later, some researchers defined “stakeholder” as “a
natural person or social group who enjoy the legitimate rights and benefits in the
procedural activities and practices.”46 Stakeholders mainly include the shareholder,
employee, customer, supplier, creditor, society, etc. Chinese scholars believe that a
natural person or group, who can exert effect on the business activities or be
affected by business activities, are stakeholders in general. A natural person or
group, who has the direct relationship with the enterprise, is a stakeholder in a
narrow perspective. Only the natural person or group, who have made promise and
contributed to the enterprise, is a stakeholder in a narrower perspective.47 The
representative views of stakeholder theory are as follows.
The ultimate goal of the enterprise is for the benefits of stakeholders. The
enterprise is a series of multilateral contracts between stakeholders, who are the key
bodies of the contracts and provide special resources to the enterprise. Stakeholders
are supposed to enjoy the equal rights of negotiation, so as to ensure the benefits of
the main bodies of the contracts. Therefore, the enterprises should take various
social responsibilities for the stakeholders except for the economic profits, meeting
the common goals and realizing the different demands of stakeholders.
It emphasizes the joint participation of stakeholders and their demands of ben-
efits. The enterprise should not only pursue the benefits of shareholders, but also
seek the overall benefits of all stakeholders, because the enterprise cannot be
45
Freeman (2006).
46
Freeman (1983).
47
Yang and Zhou 2000.
developed without stakeholders’ joint participation and co-governance. To some

extent, stakeholders share the business risk and pay the cost for the business
activities. The survival and development of an enterprise depend on its ability to
meet the demands of its stakeholders.
Employees and enterprises have set up different kinds of relationships based on the
contracts, such as the labor and employment relationship, legal relationship, and
moral relationship. Enterprises are supposed to provide employees with safe and
stable work, a fair salary and benefit, a pleasant working environment, the equal
promotion opportunities, various professional training opportunities, etc. At the same
time, employees, also investors, should participate in organizational decision-making,
and even become an active participant in strategic decision-making.48
The stakeholder theory has been widely applied in the fields of enterprise
strategy and corporate governance, and also drew the attention of the economics,
management science, political science, sociology, and the law. It has been used as a
source of reference and made great progress in the theoretical research and
empirical research, its social influence is expanding rapidly. On the study of
stakeholders in the field of education, Rosovsky (Henry Rosovsky, 1996), the
former Dean of the College of Arts and Sciences in Harvard University, divided
university stakeholders into four levels according to the degree of close relationship
with the university. The four levels are the most important groups (including
teachers, school administrators, and students), important groups (such as directors,
alumni, and donors), partial owners, and secondary groups (such as the public, local
community, media, etc., which are on the verge of the university stakeholders).49
At present, many problems related to the guarantee of rights and benefits of
private school teachers are very common in the process of Chinese private edu-
cation reform and development for a variety of reasons. The stakeholder theory can
provide an effective theoretical framework for guaranteeing the rights and benefits
of private school teachers. The stakeholder theory is conducive to establish a wide
range of network and resources related to stakeholders. Redesign the implemen-
tation mechanism to guarantee private school teacher’s rights and benefits and solve
the difficult problems of private education reform. First of all, it is crucial to define
the stakeholders in private schools, who play an important role in teacher’s rights
and benefits protection in private schools. There is no doubt that the governments,
the sponsors (investors), school administrators, teachers, students, and the com-
munity are the stakeholders of private schools, so we must be concerned about the
expectations and demands of these stakeholders greatly. Although the expectations
and demands of different stakeholders may conflict with each other, we can pay
more attention to stakeholders rather than the conflicts, if it is possible to innovate
and redefine the rights and benefits of private school teachers. Second, the modern
private schools are neither the personal assets of investors or shareholders nor the
teacher’s own organization and private organization controlled randomly by the
48
Freeman 2013.
49
Hu 2008.
board of directors. They are owned by numerous stakeholders. Schools’

decision-making and management are affected by not only the external environ-
ment, but also the active participants. Therefore, from the perspective of the
stakeholders, private schools are responsible for all stakeholders. The responsibil-
ities are, for instance, guaranteeing the quality of education for the government and
the society, and providing welfare and the opportunities of professional develop-
ment for the teachers, etc. To guarantee teachers’ legitimate rights and benefits is
not only private school sponsors’ (investors) but also the stakeholders’ (such as
government, the community, etc.) social responsibility. From the perspective of
stakeholders, we can explore how to guide the government, sponsors (investors),
community, and private school administrators to think creatively about the real-
ization of teacher’s rights and benefits. Lastly, it is vital to set up the partnership of
all the stakeholders such as the government, the sponsors (investors), school
administrators, teachers, etc., which will provide a theoretical basis for teachers
participating in school governance, and meeting the demands of their rights and
benefits. Guaranteeing teacher’s rights and benefits in private schools is facing a
huge challenge. Teacher’s rights and benefits’ guarantee not only the needs for
active participation of the relevant governments and private schools, but also needs
a broad partnership among all the stakeholders, such as the sponsors (investors),
media, community, and the whole society, based on the common benefits and the
principle of mutual respect and trust. The partnership is quite helpful to guarantee
the rights and benefits of private school teachers.
7.3.3 Practices in Different Regions
First, exploring the approach of breaking through the dualistic structure of “in the
institution” and “out of the institution.” Although there are relative provisions on
the status of private school teachers in regulations and policies, the methods to
guarantee private school teacher’s status and the status supervision system have not
been refined and specified, it will lead to the incomplete implementation of the
regulations and laws. There is a big gap between the status of public school teachers
(in the organization) and private school teachers (out of organization). How to break
the dualistic structure is a thorny problem in China? Different local governments
have taken the following measures. The first one is implementing teacher’s
engagement system, and putting the private school teachers into the personnel
department or administrative department to manage private school teachers. The
second one is the government providing some personnel positions for the out-
standing education groups. Their salaries and social insurance premiums paid by
private schools. In the third place, it is possible to strive for the personnel positions
for private school teachers from the government by governmental purchase edu-
cation services. These practices have played an active role in improving the status
of private school teachers.
Second, exploring an approach to put the “equal work equal pay” between
private school teachers and public school teachers into practice. Based on the
analysis of the measures of guaranteeing teachers’ rights and benefits in different
regions, we find that different regions have taken a few measures and tried their best
to guarantee the equal treatment of public and private school teachers. Local
governments focus on formulating the salary standards and bridging the gap
between the endowment insurances. Local governments have mainly formulated the
minimum salary standards, offered the public finance subsidy, appropriated special
funds for the development of private education, etc. For example, Guangdong,
Hubei, and Xiamen have formulated the minimum working standards for private
school teachers, and raised teacher’s actual income by various means, such as
teaching allowances, vocational benefits, etc. After the government carried out the
long-term subsidy policy for teachers in Shenzhen, 84.6% of the private primary
and secondary schools have increased the salaries for their teachers, with the
average increase by 11.2%. Thus, the average turnover rate of teachers has
decreased by 16.2%. Guangzhou, Shenzhen, and some towns and districts of
Dongguan have offered a financial subsidy to private school teachers, ranging from
300 to 1000 RMB per month. Besides, some cities are actively exploring to
improve teachers’ welfare in a variety of ways. For instance, the Luohu District of
Shenzhen offers free physical examinations for private school teachers. Baoan
District and Guangming New District gives special allowances to teachers.
Zhongkai high-tech district of Huizhou stipulates that private school teachers can
enjoy the social security subsidies. Guangzhou subsidizes teachers instead of
rewarding and support the annual salary system in private schools.50
3. We are exploring the measures to improve the social security system for private
school teachers. Shanghai Education Commission has been implementing the
annual salary system for private school staff. By doing this to encourage private
schools to pay annual salary for their full-time teachers in accordance with the
annual salary system of enterprises. At present, the annual salary system has
been implemented in all of the private colleges and most of the private primary
and secondary schools as well as private kindergartens in Shanghai. Chongqing
encourages the local governments to establish a financial subsidy mechanism, as
a supplement to the annual salary system for teachers in private primary and
secondary schools, which gradually narrows the gap of pension after retirement
between public and private primary and secondary school teachers.51
50
Guangdong Education Department: Report on the Submission of the Regulatory and
Characteristic Development of Private Education [Z].2014.
51
Chongqing Education Commission: Proposals on Further Promoting the Development of
Private Primary and Secondary Schools (2013).
The proportion of teachers, who participate in the endowment insurance system

of institutions, continues to expand. For instance, cities, such as Hangzhou, Ningbo,
Wenzhou, Shaoxing, Lishui, etc., have improved teacher’s salaries and benefits by
helping them participate in the endowment insurance system of institutions. The
above cities encourage schools to pay supplementary endowment insurance for
their staff, and bring them into the management system of medical subsidies.52 In
addition, some provinces and municipalities put private school teachers into the
housing security system, or make them enjoy the preferential policies of local
public rental housing. In fact, working in private schools is drawing more and more
attention from the public.
Moreover, in respect of the connection of social insurance, some provinces such
as Yunnan, Tianjin, Inner Mongolia, Guizhou, Guangdong, etc., have clearly
stipulated that teachers can flow reasonably between private and public schools,
with a continuous seniority calculation and the connection of social insurance.
7.4 Suggestions53
From the perspective of promoting the healthy development of private education,

the stakeholders such as the government, sponsors (investors), teachers, the society,
etc., need to properly solve the problems of private school teacher’s status, improve
their welfare and improve the appointment system for professional title appraisal.
The stakeholders are supposed to encourage teachers to participate in school
democratic management actively, and this is the most fundamental work of the
private education to guarantee private school teacher’s rights and benefits. For the
demands of rights and benefits, the stakeholders not only need to ensure the
unobstructed channels to guarantee the rights and benefits of private school
teachers, but also need to have the sustainable promotion channels. Therefore,
under the guidance of the principles of the classification management, to strengthen
the protection of the rights and benefits of private school teachers needs government
system innovation and the multi-participation of the relevant social groups in order
to promote the healthy development of private education collaboratively. The
related government should focus on revising and regulating the legal person reg-
istration types of for-profit and non-profit private schools to break the legitimate
obstacles. The non-profit private schools register as “institutions” or “private
institutions” and the for-profit private schools register as “enterprises” are the
existing obstacles. Specific recommendations include:
52
Zhejiang Provincial People’s Government: Proposals on Promoting the Healthy Development
of Private Education (2013).
53
Jing (2014).
7.4.1 Revising and Improving the Construction of Laws

and Regulations to Ensure the Implementation
of the Relevant Policies
Although many laws and regulations have made the relevant regulations on private
education and teachers’ rights and benefits. China lacks the legal system environ-
ment with justice, standard, and stability, resulting in no practice of the corre-
sponding policies. Actually, there are two types of legal systems on private
education: right system, and order system. From the perspective of the legal rights
of private education, the government should give more freedom to the education
subjects instead of intervention. While from the perspective of the legal orders of
private education, the government should provide sound orders for the reform and
development of private education instead of intervention. In conclusion, on the one
hand, the government should strengthen the construction of the laws and regula-
tions in order to guarantee the legitimate rights and benefits of the legal person and
teachers in private schools. It is imperative to eliminate legal barriers of the
implementation of the relevant policies. On the other hand, the government should
standardize the development of private education, and guide to realizing the rights
and benefits of private school teachers by the legal means.
1. In the revision process of laws and regulations, we should focus on the legal
person registration types of for-profit and non-profit private schools, and elim-
inate the barriers to register private schools as “institutions” and “private
institutions.” The solution is to register private schools as “enterprises.” For
example, to revise the concept of “institutions,” which is defined in the second
article of The Provisional Regulations on the Registration of Institutions.
Besides, it is imperative to delete the twenty-fifth article of Law of Education,
which provisions “any organization and individual cannot run a school or other
educational institution for the purpose of profits.” It is also needed to delete the
twenty-fourth article of Law of Higher Education, which provisions “running
colleges and universities cannot aim to make profits.”
2. The government needs to find out the common benefits and denominator of all
the stakeholders, respecting their demands for rights and benefit. When the
government revises the relevant laws and regulations, the government should
hear the voice of the stakeholders such as sponsors (investors), administrators,
teachers, experts, scholars, etc., to ask and collect their advice as well as making
clear the responsibilities, respectively. Thus, it is sure that there are laws and
regulations regarding guaranteeing private school teacher’s rights and benefits.
3. The government should make sure the policies to guarantee the rights and
benefits of private school teachers that are supposed to be implemented. Private
education with the nature of public welfare is an important component of
China’s education. The government should not only take the responsibility
rather than be a supervisor, but also issue the relevant supporting policies.
Otherwise, it will lead to a crisis of confidence that private school doubts the
7.4 Suggestions 203
governance ability. If the rights and benefits of private school teachers cannot
guarantee, it is difficult to develop private education in a healthy way. Therefore,
the local governments should come up with the specific policies and detailed
measures to guarantee the rights and benefits of private school teachers.
Additionally, more things can be done about it. The specific work is as follows:
(1) To speed up the launch of Proposals on Further Promoting the Development
of Private Education. (2) To build up a coordinative mechanism of private
education. (3) To specify policies on classification management and support.
(4) To advocate the government purchase the education services. (5) To set up
special funds for education development. (6) Specify and implement the policies
which the private schools and their teachers have been expecting in a long term.
However, in the process of policy-making, we should build the partnership rela-
tionship with the government, sponsors (investors) and teachers on the respect of all
the stakeholders, sharing the corresponding responsibilities. It is unwise to wait and
see, even make many excuses. Then, the government should give full play to the
initiatives of all the stakeholders, and meet the stakeholder’s demands with the
incremental benefits. Such measures are helpful to ensure the implementation of the
relevant policies, strengthen the policy implementation and supervision, thoroughly
clean up the discriminatory policies to private school teachers, and eliminate the
barriers which prevent the realization of the rights and benefits of private school
teachers. For example, the phenomena of the “glass door” (it means private school
teacher has lots of rights and benefits nominally, but there are lots of restriction to
realize rights and benefits in practice), and the “spring door” (it means some private
enterprises are kicked out of the market by some hard-and-fast rules). With the
existing situations, private schools are facing new opportunities and challenges. Thus,
it is urgent to further improve the development environment of private education, and
look for the new growth and new development space for private schools.
7.4.2 Making Clear the Idea of Classified Support,

and Pushing Ahead with Multi-participation
and Collaboratively
1. In accordance with the nature of the legal person of private schools registered,
we should take different measures and classification management to build the
teachers’ team and guarantee their rights and benefit. On one hand, we should
explore the different policy options and institutional mechanisms for teacher
team construction and teacher’s rights and benefits protection. In the framework
of classification management on for-profit and non-profit private schools, we
should implement different public financial subsidy policies according to the
natures of the schools. It is also needs to be formulated and implement the
corresponding policies based on the schools’ characteristics and their needs of
development. Besides, we should support non-profit private schools with high
qualities and special characteristics, guide the non-profit private schools whose
sponsors (investors) do not ask for returns to lead in strengthening the teacher’s
team building and guarantee teacher’s rights and benefits. On the other hand, it
is good to show the individual difference and characteristic when implementing
the classification support and management policies, and set up the points system
and the progressive policies base on the working seniority, payment of social
security insurance, professional titles, etc. Third, private school’s classification
support should prevent new institutional discriminations against for-profit pri-
vate school teachers. Because private schools (for-profit and non-profit) also
partially provide social services, their teachers should unify into the same
planning as public school teachers in the professional training, excellent indi-
vidual assessment, and professional title appraisal. Do not discriminate the
teacher due to their schools’ nature.
2. We should adhere to the principle of relying mainly on the local governments
while seeking assistance from the central government. On one hand, owing to
the comprehensiveness and complexity in the realization of the private school
teacher’s rights and benefits, we need to do well in designing the policy
framework. The relevant administrative departments of the central government are
supposed to eliminate the policy barriers and make every effort to provide a fair
environment. While focusing on policy top-level design, local governments
should be encouraged to explore the approach of private school teacher man-
agement in a bold way. The development of local economy and society differs
significantly from the actual development of private schools, so the central gov-
ernment should seek common ground while reserving difference, and spare the
space to explore the education reform and innovation for the local government,
when investigating and making policies. On the other hand, private schools have
made great contributions to regional economy and society by providing diversi-
fied educational opportunities, alleviating the shortage of financial education funds
and cultivating a large number of applied talents. Therefore, considering the
orientation of private school development, the guarantee of the rights and benefits
of private school teachers should abide by the principle of localized management.
The local government should play a leading and active role according to the
“territorial principle” in the fields of private school teacher’s salary and benefits,
social insurance, professional title appraisal, etc.
3. All the stakeholders, such as the government, sponsors (investors), and teachers
should participate in and take responsibilities altogether. All stakeholders should
establish a new cooperative partnership, playing a corresponding role in dif-
ferent areas. The “stakeholder” policy framework can run through the whole
practice. Strengthening the interactions between the government, private
schools, and teachers, both the subjects of the interactions should have the
substantive communication, need to be being revolved rather than purely par-
ticipation. The interactions should emphasize to solve real problems in the
policy implementation. Besides, the issue of guaranteeing the rights and benefits
of private school teacher involves the interests of a wide range of departments,
such as human resources and social security department, administrative
7.4 Suggestions 205
department, development and reform department, finance department, public

security department, civil affairs department as well as industry and commerce
department, etc. Because each department takes different responsibility, and the
policy implementation is based on different provisions. Therefore, the education
department is hard to coordinate all the stakeholders, they usually have the
feeling of being powerless during the policy implementation. Thus, it needs to
establish and optimize a mechanism of communication and coordination
between different departments, and strengthen the policy supervision and
guidance so as to form a working framework with clear responsibility, mutual
aid, and collaborative participation. To solute the prominent contradictions and
the major issues during the policy implementation in private education is the
pressing problems.
4. It is an important duty of the government to promote the healthy development of
private education and to guarantee the rights and benefits of private school
teachers. The government has a comparative advantage in the legal system
construction, policy orientation, and financial support. The government should
play an active role in dealing the problems in teacher status, basic endowment
insurance, basic medical insurance, assessment of professional titles, and par-
ticipation in the school democratic management.
It should be noted that private schools are market-oriented school financed by
private capital. The essence of private school teachers to realize their rights and
benefits are the reasonable educational resources allocation. Therefore, it is nec-
essary to bring the market into full play. Private schools should pay close attention
to the needs of the market and the teachers, actively expand financing channels of
school funding and establish a reasonable cost-sharing mechanism among the
government, schools, and teachers. Private schools should sort the costs of teachers’
rights and benefits and make clear about who will bear the main costs and
expenditure liability, so as to attract more private capital. Moreover, it is important
for private schools to lay a solid material foundation for teachers’ rights and ben-
efits’ protection by establishing and perfecting the mechanism of financing and
capital operation. Especially in aspects of teachers’ salaries and benefits, enterprise
annual salary system, occupational annual salary system, and commercial insur-
ance, we should try to build an incentive mechanism, for instance, the equity
interest encouragement mechanism, to improve teacher’s salary gradually following
the laws of the market economy.
7.4.3 The Government Performs Its Management Functions

and Gives Full Play to Its Role as a Regulator
It is imperative to clarify the responsibilities of the central and local governments,

play an active role of regulator, establish and improve the relevant institutional
mechanisms to strengthen public financial support, and provide a strong guarantee
for the status, salary, social security, professional title appraisals, and democratic
management rights of private school teachers.
1. Make clear that the private school is a legal person and accept the social status
of private school teachers to make private schools more attractive in the
employment market. Non-profit private schools shall register as “private legal
institutions” or “financially independent legal institutions,” where the proportion
of teachers in all school faculties should be roughly the ratio as what in local
public schools. Private school teachers can be included in the social security
system the same as public school teachers. Private school teacher’s basic pen-
sion depends on their file salary and shall be at the same level as the public
school teachers. Besides, the government shall offer a subsidy. The for-profit
private schools shall register as private “non-enterprise units “or” enterprise
legal persons,” where the government can offer a certain number of “institu-
tional job positions.” Teachers, who do not meet the requirements of taking an
“institutional job position,” can be included in the social security system for
enterprise employees. The school will be encouraged to establish the enterprise
annuity system to increase teachers’ retirement pension by purchasing service.
2. It should transform government functions and service ideas, improve the man-
agement methods, and perform the government responsibilities as private edu-
cation regulator. The government should set up the concepts of limitation,
responsibility, rule of law and the serving government, to be a compatible,
cooperative, and protective regulator to private education. When the government
performs its regulating duties, it should also take corresponding responsibilities. It
should also investigate for accountability of the government in action. To break
the ice by solving the prominent problems which private school, private school
teachers, and the public are most interested in. It also should respond to various
claims of private school teachers quickly, and always take teachers satisfaction as
a benchmark in the innovative private education management system. Starting a
new era of private education relies on the support of all teachers.
3. We should build a social security system to improve public subsidy policies
such as differential subsidies, fixed subsidies, special subsidies, research grants,
and incentive subsidies, so as to provide diversified protection for the rights and
interests of private school teachers. Establish a special fund at three levels,
which are the central fund, the provincial fund, and the local fund, to support the
development of private education. Some of the funds can be used to establish a
faculty pension system, strengthen teacher professional development, and sup-
port teacher training projects. Special funds and projects will be included in the
fiscal budget and will increase in proportion with the fiscal revenue growth.
Each year a certain proportion of special funds will be arranged in priority to
guarantee teacher salary, social insurance, and teacher exchange training rights.
To strengthen the supervision of special funds, the funds allocated to private
schools for teachers’ rights and interests shall put into an exclusive account for
exclusive uses. In the school’s accounting system, the funds shall independently
be calculated by projects and budget. The government can supervise the flow
7.4 Suggestions 207
and use of funds through the financial supervision platform of private schools,
and strengthen the performance evaluation of the use of special funds for the
protection of teacher’s rights and interests in private schools.
4. Encouraging and guiding social capital into the field of education in a variety of
ways, expanding the financing channels of private schools, establishing and
improving the financing mechanism so that more money has an access to
education, and be used for teachers. Providing material support for protection of
the rights and interests of the private school teachers. Constructing the com-
prehensive coordination mechanism including both internal and external
departments of the education system to eliminate institutional obstacles for the
protection of the rights and interests of the teachers in private schools.
Establishing a system for co-development of rights and interests of teachers in
both public and private schools to promote equality of teacher’s social status,
remuneration, social insurance, professional title assessment, and democratic
management between public and private schools.
5. Increasing government procurement of educational services, establishing and
improving government procurement of educational services mechanism, and
improving systems such as government subsidies, government procurement
services, student loans, fund incentives, donations, and incentives. Encouraging
private schools to protect lawful rights and interests of teachers without
increasing the economic burden of private schools and school runners.
Optimizing local government service purchasing, establishing social security
and housing fund systems for private school teachers properly, and encouraging
areas and schools to provide supplementary (subsidy) pension insurance and
supplementary housing fund to teachers for they can afford it. Establishing and
improving a mechanism for regular growth of the basic pension for teachers
retired from for-profit private schools gradually. Improving the fund-raising
mechanism for the basic endowment and health insurance. The government,
school funders, and teachers share the cost. Setting up a unified standard for
both public and private school teachers in terms of social insurance subsidy
provided by the government. Social security must be offered by teacher’s pro-
fessional status instead of the property of the school which the teacher serves to.
6. Private school teacher’s professional development should integrate into the
overall planning. First, the government involves less in teacher’s professional
title assessment. Creating classified assessment that private schools can evaluate
their teachers by themselves under the supervision of the government. It is also
to create the professional title evaluation system and standards according to
private school teacher’s features. Encouraging private schools to make per-
sonalized evaluation criteria and review teams according to private school’s own
practices. At the same time, making sure that teacher evaluation is fair,
impartial, and open. Teacher’s evaluation should be subject to the supervision of
all teachers through the public notice system. Second, granting private schools
with the authorities of labor relations and file management. Nowadays, private
schools without the above authorities, and they have to entrust the personnel
management institution to deal with the labor relations and file management
affairs. The government provides a subsidy to private schools to cover those

expenses. Third, establishing a reasonable teacher mobility mechanism and a
social security mechanism. Teachers in private schools shall be treated in the
same way as those in public schools in terms of mobility, title defining after
internship, title evaluation, training, medical insurance, and social insurance.
Finally, establishing a private teacher training mechanism to promote their
professional development. Cultivating subject leaders and backbone teachers to
help the career development of private school teachers by offering more research
projects exclusively available to private schools, or intentionally increasing the
proportion of private school teachers, so that the private school teachers can
access those research projects.
7.4.4 Private Schools Should Fulfill Their Responsibilities

to Ensure Teacher’s Legitimate Rights and Interests
1. We should adhere to the “people-centered” educational philosophy, and pay full

attention to teacher’s status and roles. Education should base on student, school
should base on teacher. Private schools and their sponsors (investors) should
innovate private education reform and development mode, focus on teachers by
establishing the “people-centered” educational philosophy. Private schools also
should pay full attention to teacher’s status and roles, improve the internal
democratic management mechanism, perfect personnel management system,
strengthen the resource allocation management, and guarantee the funds to be
used in team building preferentially. Simultaneously, we should strengthen the
resource allocation management so that the funds are supposed to be spent on
team building primarily. Besides, we should improve the system of democratic
internal management, guarantee the staff to participate in the democratic man-
agement and supervision by the staff congress which teachers as a main part. We
should gradually set up and complete labor union in private schools, which is
relatively independent and plays a positive role. Establishing and improving the
relief mechanism to guarantee the smooth channels of resolving conflicts.
Fostering the sense of rights and interests of private school teachers in order that
teachers can understand and will have to participate in the democratic man-
agement to supervise and protect their rights and interests. Organizing teachers
to participate in the governance of private schools rationally and orderly in
accordance with the law.
2. Increasing teacher’s salary constantly with the principle of making sure equity
and emphasizing efficiency. Offering salary packages to private school teachers
according to the public school’s salary standard at the same level. Setting up the
regular wage incensement mechanism, which makes the salary standard of
private and public schools at the same level, and keeps pace with the national
economic development and the social progress. In accordance with the principle
7.4 Suggestions 209
of “equal work, equal pay,” we should enrich the archives of basic wages and
put the performance salary system for private school teachers into practice.
Private schools should take initiatives to raise funds to meet the demands of
salary packages. As for the wage distribution, we should perfect the internal
allocation system to inspire teacher’s enthusiasm, adhere to the principles of
distribution, such as more pay for more work, competitive pay for outstanding
work, inclining to frontline teachers, excellent teacher, and teachers with lengthy
seniority in the wage distribution.
3. We will build a multilevel security system. Private schools should pay the
endowment insurance, medical insurance, unemployment insurance,
work-related injury insurance, and maternity insurance and housing provident
fund in full amount for teachers. Private schools should establish teacher’s
welfare system, which provides welfare and housing security (subsidies) for
their staff and families. Private schools also should supply the endowment
insurance system and build a multilevel security system, such as enterprise
annual salary system, occupational annual salary system, and commercial
insurance system.
4. The for-profit schools transfer part of the residual claim rights to teachers,
allowing them to hold the shares. By the means of re-allocation, the agents will
be motivated by the residual claim, which not only increase teacher’s income
but also makes them more enthusiastic. A community of investors and teachers
will come into being eventually.
5. We will set up a teacher professional development center and research center to
provide guidance to teachers for the teaching and academic research. The center
is also a platform for communication and training, scientific research, profes-
sional title appraisal, and professional development. We should perfect the
system of teaching and academic leave to ensure teacher’s normal rights and
interests of vacations. It is also important to set up the office to guarantee the
policy implementation, dealing with related issues of teacher’s rights and
interests.
7.4.5 Industry Organizations Should Offer Professional

Services to Promote the Policy Implementation
Industry organizations should provide multilevels and multi-modes professional

services to private school teachers. Industry organization can take advantages of the
neutrality and coordination in order to put the related policies into practice.
1. Private school teachers should take an active role in policy implementation. It is
imperative to raise the teaching standards and improve the teaching qualities,
improve the sense and ability to protect teacher’s rights and interests. In addi-
tion, we should strengthen their organizational identity and sense of teaching
responsibility and being masters, make teachers actively participate in the
Teachers’ Congress, exercise the rights of supervision and democratic man-

agement by coming up with proposals, and exercise the related rights in
accordance with the labor union, law to protect their legitimate rights and
interests, via setting up the labor union.
2. To conduct vigorous propaganda of the outstanding deeds of private school
teachers in the society. It will help to create a good social atmosphere for the
policy implementation. We should reward teachers with great contributions in
the long term, positively publicize teacher’s advanced models and achieve-
ments. At the same time, we should bring the role of trade associations and trade
unions into full play. Meanwhile, the society should pay close attention to the
school management and supervision, associate the whole industry to participate
in teacher training.
3. Setting up the regular supervision and inspection system. We should strengthen
the organizational building of the industries and intermediary service agencies,
emphasis on the researches and assessments as the third party independently, do
more comparative researches and learn referential experiences of the developed
countries to provide theoretical guidance and policy advisory services.
Moreover, we should build a bridge between the government, the society, and
private schools, explore new modes on the issue to promote private education
reform and development, employ commissioners for supervision in private
schools and set the commissioners as one of the standards of private school
evaluation. In addition, we should establish a system of regular supervision and
inspection, which is conducted by the third party. The practice of related policies
should be regarded as the most important content of private education super-
vision. Finally, we are supposed to announce the conclusions of the supervision
and inspection, which will promote the implementation of relative policies and
measures.
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Chapter 8
New Reality: Supporting and Regulating
Nongovernmental Forces in
Education Sectors
As the international community achieved universal consensus on the vital role and
function of private sector in the process of educational modernization, private
education in China has experienced rapid growth and several reforms during the
past decades. Social capital in education has developed rapidly. Nongovernmental
forces have also participated in the holding of mixed-ownership education, online
education, and many other forms of institutional innovation which is
China-characterized, unprecedented, and upbeating. Overly rapid development has
caused several issues, many of which have been addressed in previous chapters.
Meanwhile, reforms, larger and small, were constantly deepened though there are
always structural obstacles left untouched.
The new law governing private education coming into effect since September
2017 has made for-profit schools legally allowed in China for the first time. Though
China is not the first country in the world to legalize profit-seeking education
entities, China is definitely one of the very first countries to formulate special law
on the legal designations of private schools and national regulation on for-profit
schools. In addition, education administrative departments at all levels were clearly
required to put forward implementation regulations in accordance with the new law
and 15 provinces, autonomous regions, and municipalities including Anhui, Gansu,
Tianjin, Yunnan, Shanghai, Hubei, Zhejiang, Hebei, Jiangsu, Henan, Shaanxi, Inner
Mongolia, Hainan, Qinghai, and Guangdong have already introduced local
enforcement regulations up to now. Under these revised regulations, Chinese pri-
vate education is expected to restructure itself and realize a few specific benefits:
1. Private schools hereafter should be designated and regulated under categories of
profit-oriented and non-profit ones, both of which should give priority to serving
public interest and general welfare and cater to public concerns over quality
education. For-profit schools should be an institutional innovation though no
profit-oriented private school is allowed in the 9-year compulsory education.
2. Social support for the educational system should be continually encouraged in
traditional field and also in new fields where unmet needs and underdeveloped

214 8 New Reality: Supporting and Regulating Nongovernmental Forces …
market niches should unleash the potential of private investments. The share of
international schools, public–private partnership schools, and schools run by
national and global education fund should be increased.
3. Private education should play a larger role in compensating for what public
education cannot do. It should play a vigor role in introducing intra- and
inter-sector competition at the same time. Merger and acquisition and school
reshuffling should be part of the overall push to optimize market structure and
leadership changes be part of the reform to streamline or modernize private
schools if necessary.
China accelerates establishing a long-term mechanism for the development of
private education, in which “supported development” and “regulated development”
are the two parallel streamlines. We are sure to see the following phenomena:
1. Stronger protection for property rights and assent ownership. The state protects
the lawful rights and interests of the founder(s), the president, the faculty, and
the educated of a private school. All the legal person property rights formed by
the invested assets of the founders, state-owned assets, donated properties and
the school’s accumulated assets will be enjoyed by the school, while owners of
for-profit schools have the right to dispose of the school assets legally after
paying taxes. Also, those bodies and individuals who have made outstanding
contributions to the development of non-state education undertaking will be
awarded and commended.
2. Greater autonomy in school governance, especially in setting tuition fee. Before
the amendment was passed, any tuition fee changes should be approved by the
government or let the government to be informed. With the implement of the
new law, some local governments give full autonomy to private schools’ tuition
fee setting and some local governments are planning on giving the autonomy
year by year. Some provinces are piloting on giving various degrees of auton-
omy to human affairs, curriculum, admission, and enrollment.
3. Better education service system and supporting policy system. Education
institutions engaged in production and business activities will be gradually
transformed into enterprises and subject to the corporate law. The transfer
procedures will be standardized, the transitional policies improved, and more
education services that meet market needs should be encouraged. Measures to
support non-profit private schools such as purchasing services, and leasing and
transferring idle state-owned assets, cooperating with social capital, and
awarding funds, incentives for donations, student loans, and grants for schol-
arships are stipulated by the new law and highly favored by private schools.
4. Greater access to the financial market. The old legal framework sets various
restrictions on private schools to perform capital raising in the financial market.
Private schools in short of funds had to bypass the restrictions and adopt
financial vehicles such as “Variable Interest Entities” (VIE) to attract overseas
investors. In addition, education donations are not tax-exempt, the tax-free
qualification procedures are inconvenient, and private financing and operating
funds cannot generally be pledged and loaned, which limited and blocked the
8 New Reality: Supporting and Regulating Nongovernmental Forces … 215
entrance of more social capitals into education. However, the longstanding legal
barriers will be lifted and many private schools will be able to be listed on the
domestic stock market, and more private capital will be able to link with edu-
cation undertakings.
5. Clearer support for reform of quality and efficiency in private schools. Logistics
socialization, entrusted management, and group chain operations are to be
encouraged. Equal cooperation among private schools, off-campus training
institutions, and industry enterprises are also to be encouraged. It is believed that
industry strategies are able to be integrated into the education to realize the
integration of work and study, production and education, school, and enterprise.
These efforts will accelerate the integration of education with industry, com-
merce, culture, sports, and tourism services, and promote China’s social con-
sumption through educational services. In the process of population
urbanization, private education will be relied on to promote urban education
services to cover the resident population, to release the consumption potential of
various education populations, and to nurture and expand educational consumer
groups. Private schools are able to become the highlands of education and
teaching reform where high-quality educational services are provided, the rights
and interests of teachers and students are effectively safeguarded, and the
effectiveness of education supply is highly improved.
6. More reasonable regulation and supervision. Decentralization is an ever-lasting
theme in private sector, and how to transform government functions is an
associated problem inherited in the ongoing administrative reform in China. An
important guarantee for decentralization in private education field is the prin-
ciple of strict entry and tolerant exit. The approval for entering education
industry will be simplified, and unreasonable pre-approval items be eliminated
as a result of the regulatory changes. However, post-event supervision will be
strengthened, and credit rewarding and punishing system will be established.
Where does the private sector go from here? There is no definite answer to what
and how the future looks like, in which the process of private education develop-
ment modifies itself with key players in this arena who interacts every moment. But
at the end of this book, we would like to envision a strong, sustained growth of
private education and it, at times, creates new highlights that drive the education
development and innovation in China.
1. Private education is assumed to be an important part of China’s efforts to
provide more balanced and inclusive education. Private education sector has
already evolved itself to a capable provider that provides education services
from preschool education to higher education, from academic education to
non-diploma education since the reform and opening up. The number of private
schools nearly doubled during the last decade and the private sector will sure to
continue booming in the future. The hematopoiesis function of the industry will
be highly enhanced, thereby expanding education supply with a new batch of
education products and services that further enhances the fairness in access to
education and experience in education.
216 8 New Reality: Supporting and Regulating Nongovernmental Forces …
2. Private education is assumed to be an important practice in China’s efforts to

provide more diversified education. Several private schools, excluding schools
that offer compulsory education, are piloted to run as for-profit entities. The
provision of services with higher vitality and diversity will be made in the
future. There are dispute and doubt on whether the new reform will lead to very
high amounts of investment in the education sector, and we believe the edu-
cation–industry linkage can be anticipated to grow stronger, especially when
educational consumption has developed dramatically. It is estimated that there is
over 20 billion dollar in education investment to be made, and it will reasonably
lead to the marriages of private school and virtual education, private school and
non-degree education, private education and IPO financing, etc.
3. Private education is assumed to be an important force in promoting China’s
comprehensive education reform. The comprehensive reform must not only
eliminate some institutional and institutional obstacles that restrict the scientific
development of the educational undertaking but must also cooperate with var-
ious reform measures in economic, political, cultural, and ecological civilization
areas. It is imperative to use the rule of law to adjust, standardize, and resolve
new challenges that arise in educational reforms and developments. Therefore,
the new initiatives on private education are heavily favored to effectively resolve
contradictions and ensure that all innovative approaches in the reform are made
by the rule of law. The challenges and obstacles which have plagued the
development of private education for decades are far more complex, often
entangled with social-economic and cultural-psychological issues and the
interests of large and powerful investors. A slight move in private education
arena may affect the education cause as a whole, and private education is
expected to grow up into not only a respected companion of public education
but also a well-positioned competitor.
4. Private education is assumed to be an important approach for China speeding up
education modernization in the new era. The reform calls for the establishment
of modernized schooling system in private sector with clearer management
mechanisms and regulations for non-profit and for-profit schools. Even in the
non-profit policy environment in the past, the private sector has increasingly
participated in covert profit-seeking activities. While doing so, it has generated a
series disadvantage in internal and external governance mechanism. Historically
and today, the majority of private schools maximized net tuition revenue by
either adopting the for-profit education model or cutting back expenses on
long-term projects. It is prepared for the new round of private education reform
and development to upgrade the governance systems and capabilities and to
make the private sector ready for embracing the modern society and capable of
establishing modern school system.

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Perspectives on Rethinking and Reforming Education

More information about this series at http://www.springer.com/series/14177

Jing Tian Qian Li

Private Education in China

Qiang Liu Qian Li

ISSN 2366-1658 ISSN 2366-1666 (electronic)

Library of Congress Control Number: 2018947807

© Springer Nature Singapore Pte Ltd. 2018

June 2018 Haitao Zhou

1 Private Education and the Tale of Two Sectors . . . . . . . . . . . . . . . . 1

2.1.7 The Number of Private Kindergartens Continued

2.6 The Number and Proportion of Students in Private Primary

2.9.2Average Private Senior High School Scales

2.12.5 Assets of Private Kindergartens by Province/

4.1.2 Relevant Provisions of Local Governments . . . . . . . ... 98

5.2.1 The Contradiction Between the Government’s

6.4 Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

7.4.2 Making Clear the Idea of Classiﬁed Support, and

requirements of running school lawfully, managing schools independently, super-

1.1 Chinese Philosophy of Private and Private Realms

Chinese traditional philosophy devotes great attentions to investigating and com-

© Springer Nature Singapore Pte Ltd. 2018 1

The rise of “neo-Confucianism” in Song Dynasty (960–1127) strengthened the

1.2 Private Education in Pre-modern Times

It is worth taking up space to describe the social context in which Confucius’

tremendous interests in private education. The private education providers

1.3 Private Education in Early Modern Times

1.4 Private Education in the New China

According to the data (Educational Statistics Yearbook of China, China Educational

2.1 Changes in the Number of Private Schools

2.1.1 The Number of Private Colleges/Universities

In 2004, the number of private colleges/universities nationwide has grown con-

© Springer Nature Singapore Pte Ltd. 2018 13

2.1.2 The Number of Private Independent Colleges

2.1.3 The Number and Proportion of Private Senior High

2.1.4 The Number and the Proportion of Private Secondary

The number of private secondary vocational schools showed a trend of incensement

2.1.5 The Number of Private Junior High Schools Showed

2.1.6 The Number of Private Primary Schools Showed

2.1.7 The Number of Private Kindergartens Continued

The number of private kindergartens nationwide was markedly trending up from

2.2 The Number of Students in Private

2.2.1 The Number of Students in Private Colleges/

The number of students in private colleges/universities continued to grow from

2.2.2 The Number and Proportion of Private Higher

From 2004 to 2015, the number of enrollment in private colleges/universities

2.2.3 The Number of Private College Graduates Continued

2.3 The Number of Private Senior High School Students

2.3.1 The Number of Students in Private Senior High

2.3.2 The Number and Proportion of Enrollment in Private

2.3.3 The Number and Proportion of Graduates

2.4 The Number and Proportion of Students in Private

2.4.1 The Number and Proportion of Students in Private

2.4.2 The Fluctuation in the Number and Proportion

2.4.3 The Number and Proportion of Graduates in Private

2.5 The Number and Proportion of Students

2.5.1 The Number and Proportion of Students

2.5.2 Both the Number and the Proportion

2.5.3 The Number and Proportion of Graduates

2.6 The Number and Proportion of Students in Private

2.6.1 The Number of Students in Private Primary Schools

2.6.2 The New Student Enrollment of Private Primary

2.6.3 The Number of Graduates from Private Primary