Institutions of higher education in China include universities, short-cycle colleges, and short-cycle vocational colleges. In the past these institutions conducted their educational and research activities under state plans based on China's planned economy. The transition to a "socialist market economy" since the latter half of the 1980s has been accompanied by a sweeping review of traditional systems. Government control has been eased, and reforms are being implemented with the aim of introducing the market mechanism and the competitive principle into education.
Although the percentage of students advancing to higher education is still below 5%, there are no plans for rapid expansion, owing to financial problems and other factors. Efforts are focusing on reforms designed to improve operational efficiency and raise standards of education and research. The financial situation is a major problem, and a variety of funding channels are being explored, including the use of private-sector funds.
