Chinese Higher Education Finance: Changes over Time and Perspectives to the Future

With gradual deepening of the reform of economic and educational systems, Chinese higher education finance has experienced an evolutionary process, transforming from the highly-centralized finance system into a government-led, multi-channel cost-sharing system. Its appropriation system has shifted from incremental funding and single- parameter formula funding approaches into the pattern that lays more stress on equity, efficiency and quality. Its subsidy pattern has changed from the simple welfare education into cost-recovery by tuition fees and diversified financial assistance. This paper, along with the development stages of Chinese higher education finance system, illuminates its evolution since the founding of the People's Republic of China (PRC), analyzes reasons and characteristics of the reform and development based on data, and explores the future of Chinese higher education finance reforms.