Financing for equity in higher education

1. Education resources to subnational governments

Introduction

Key financing indicators (UIS Data)

As of 2024, China’s gross enrolment ratio for tertiary education for both sexes was 76.26%. The initial government funding per tertiary student as a percentage of GDP per capita was 20.05% as of 2023. That same year, the initial household funding per tertiary student as a percentage of GDP per capita measured at 6.38%.

National financing indicators

According to the 2024 Statistical Bulletin on the Development of National Education, China’s gross enrolment ratio for tertiary education was measured at 60.80%. According to education funding statistics for 2023, the general public budget expenditure per student in regular higher education institutions accounted for 23.37% of GDP per capita, while per-student government financial aid represented 2.55% of GDP per capita. During the same period, average tuition fees per student in regular higher education institutions constituted 6.18% of GDP per capita.

Tuition-free status

China's free-tuition policy ended in 1997. However, the central government regulates tuition fees by setting limits on increases and establishing a standard ratio of tuition fees to disposable income. Tuition levels are set jointly by the Ministry of Education, the State and Provincial Development and Reform Commissions, and the Bureau of Commodity Prices.

Governance

The Ministry of Education (MOE) and the Ministry of Finance (MOF) work together to oversee and finance national higher education institutions (HEIs). Local governments also finance and manage their own institutions. As of the mid-1980s, HEIs have gained more autonomy and are now considered independent legal entities.

1. Education resources to subnational governments

Since 2001, China has relied on general transfer payments as the main mechanism to redistribute resources across regions. These transfers are not education-specific but cover all sectors. They are calculated by comparing a region’s standard expenditure needs with its revenue capacity, adjusted by a transfer coefficient. Distribution factors include the size of poor populations, ethnic minority status, per capita farmer income, local fiscal strength, per capita GDP, poverty reduction results, and climate conditions. Education is included within these standard expenditure needs, which are determined by multiplying the number of students at each level by a national per-student cost standard and a regional cost coefficient, aggregated across provinces, prefectures, cities, and counties. Under the 1984 Regional Ethnic Autonomy Law, ethnic minority areas receive preferential treatment in these allocations. In 2019, 85.3% of all fiscal spending occurred at the local level, with 67.9% transferred directly from the centre. According to statistics on education funding, local general public budget expenditures on education accounted for 94.8% of the total in 2019.

2. Education resources to institutions

Funding for private universities in the absence of public institutions

At present, China’s higher education system is predominantly composed of public institutions, with private higher education institutions playing an important supplementary role.

Private higher education institutions in China are not totally private. They fall under the purview of local governments and may also be eligible to receive appropriations from local governments. The most common group of private institutions, minban HEIs, are officially recognised by the MOE. Many private independent colleges (previously affiliated with universities but running independent enrollment programs) have been transformed into independently-established public or private minban colleges. These colleges can then receive direct governmental appropriations. In 2019, these appropriations made up 10.3% of minban universities’ revenues.

In recent years, the government has increased its investment in minban universities’. According to education funding statistics, the proportion of fiscal expenditure in the total funding for minban colleges and universities rose from 10.39% in 2019 to 11.26% in 2023.

Allocation and equity

The budget allocation system of centrally-administered colleges and universities consists of two parts:

Basic expenditures- calculated based on a per capita fixed allocation according to factors such as scale and school-running costs. Preference is given to central universities in the western region and small-scale central universities.

Project expenditures- consists of six elements: ‌special fund for improving basic educational conditions in central universities, special funds for education and teaching reform in central universities, ‌special funds for basic scientific research in central universities, special fund for guiding the development of world-class universities (disciplines) and distinctive programs in central universities, matching fund for donation to central universities, and performance-based funding for Institutional management reform in central universities.

Alongside yearly allocations, public universities in China may be funded through various national initiatives and plans. For example, Project 211 and Project 985 focused on elevating 115 public universities to international academic standards. The Double First-Class University Plan and the One Province, One School project also fund selected universities for development.

Local administrations are asked to follow these guidelines when determining their own budget allocation systems.

3. Education resources to students

Admission for vulnerable groups

Since 2012, the Ministry of Education has worked to reform the entrance exam and admission policies, resulting in preferential admission programs to encourage elite colleges and universities to admit students from rural and poverty-stricken areas.

The “Three Special Plans” include the national special plan, the local special plan, and the special plan for colleges and universities. Each one may vary as the implementation is determined by each province.

The national special plan is aimed at targeted enrollment in poverty alleviation areas.

The local special plan is for rural students in the implementation areas of each province (autonomous region and city).

The special plan for colleges and universities is aimed at recruiting diligent and studious rural students with excellent grades in high schools below counties (including county-level cities) in remote, formerly poor, and ethnic minorities.

By 2023, nearly 1.1 million students from rural and impoverished areas were admitted through these programmes.

In higher education, China has established a comprehensive student financial aid system led by the government and jointly supported by educational institutions and society. This system encompasses scholarships, loans, bursaries, subsidies, tuition waivers, and work-study opportunities. Currently, there are 20 national student aid programs, including the National scholarship, National bursary, and National student loan. Furthermore, according to the ‌Administrative Measures for Student Financial Aid Funds, public general higher education institutions are required to allocate 4%–6% of their institutional revenue to student aid, while private institutions are required to set aside no less than 5% of their tuition revenue exclusively for student awards and assistance.

Scholarships, grants and loans for vulnerable groups

Under the Ministry of Education and the Ministry of Finance, China has established a comprehensive student financial aid system in higher education. integrating various forms of support such as the National scholarship, National aspiration scholarship, National bursary, and National student loan. Local governments also contribute funds to provide subsidies. Additionally, higher education institutions are required to allocate a specified percentage of their institutional revenue to student aid programs.

List of several forms of support provided by the government and what they cover

National scholarship 本专科生国家奖学金	Full-time undergraduate (including higher vocational and second bachelor’s degree students) who are exceptionally outstanding and under the national enrolled plan.	Awards 120000 students annually, providing each with CNY 10000 per year
National inspirational scholarship 本专科生国家励志奖学金	Full-time undergraduate (including those in higher vocational and second bachelor's degree programs) who are academically excellent, demonstrate strong moral character, from economically disadvantaged families, and are under the national enrolled plan.	CNY 6000 per year
National bursary 本专科生国家助学金	Full-time undergraduate and students from economically disadvantaged families (including those in higher vocational and second bachelor's degree programs, excluding student veterans) who are under the national enrolled plan.	CNY 2500-5000 per student per year
National bursary 本专科生国家助学金	All full-time student veterans are eligible for the National bursary.	CNY 3700 per student per year
National scholarship for postgraduate 研究生国家奖学金	Full-time postgraduate	For Master’s students: 70000 enrolled and CNY 20000 per year For Doctoral students: 20000 enrolled and CNY 30000 per year
Postgraduate academic scholarship 研究生学业奖学金	Support is provided to eligible full-time postgraduate to ensure the completion of their academic programs.	The coverage, tiers, award criteria, and assessment methods are determined by higher education institutions.
National student loans 国家助学贷款	Credit loans to higher education students from families with financial difficulties.	CNY 20000 per person per year
State education subsidies for veterans 服兵役高等学校学生国家教育资助	Higher education students who enlist in military service as conscripts or are recruited as non-commissioned officers (formerly known as corporals)	CNY 20000 for undergraduate students, CNY 25000 for postgraduate students.
Tuition compensation loan repayment for grassroots employment 基层就业学费补偿贷款代偿	Graduates from centrally administered higher education institutions who work in grassroots units below county level in the central and western regions, difficult and remote areas, and old industrial bases may apply for their tuition fees or national loans compensated.	CNY 20000 for undergraduate students, CNY 25000 for postgraduate students.
Publicly funded training program for outstanding teachers 师范生公费教育中西部欠发达地区优秀教师定向培养计划	The funded teacher training program covers students from the six centrally administered normal universities—Beijing Normal University, East China Normal University, Northeast Normal University, Central China Normal University, Shaanxi Normal University, and Southwest University--who are in the training program for outstanding teachers in underdeveloped areas in the centra and western regions.	The programme covers tuition, accommodation, and also receive living allowance.

Other programmes held at the local or institutional level include work-study assistance, green channel, and on-campus financial assistance.

4. Support for students’ living costs

No information was found.

This profile was reviewed with the support of the Chinese National Commission for UNESCO and national expert Professor Yu Zhu at the University of Dundee, UK

Última modificación:

Mar, 03/03/2026 - 23:31