Home > Policy > White Paper, Notice, Announcement > White Paper > FY2003 White Paper on Education, Culture, Sports, Science and Technology >Part1 Chapter4 Section6.3

Although private institutions of higher education began to be established in China in the 1990s, most of them were national and public. The public financial expenditures on higher education, however, was only 0.5 percent of the GDP, and 0.4 percent was covered by private expenses (OECD statistics, 1999). The government is making efforts to increase expenditures, but a rapid increase is not expected and the expansion of various financial resources and making the allocation of the budget more efficient are issues.

China's institutions of higher education were free to attend for many years, but all began collecting tuition fees in 1989. Institutions of higher education set these tuition fees after obtaining approval from local governments. The tuition fees have been rising sharply every year, and a large number of institutions of higher education collect fees of several thousand yuan, a cost equivalent to half the national average annual income for laborers. The government is thus addressing this new issue by implementing support for financially troubled students including the reduction or exemption of tuition fees and enhancement of scholarships. In addition, income from research and development services for companies and corporate administration is also becoming a valuable financial resource.

In respect to increasing the efficiency of public financial expenditures, in addition to the 211 Process, the government began the 985 Process, in which funds are given to nine universities in order to raise them to the international level for universities. This project was spurred by the 100th anniversary of Peking University. The government also carries out educational evaluations, which it made mandatory in 2002, and these evaluations are reflected in budget allocation.