Implementing Regulations for the Law of the People’s Republic of China on the Promotion of Private Education (Revised in 2021)
Promulgation Authority: State Council
Release date 2021-04-07
Effective on 2021-09-01
Source: https://www.gov.cn/zhengce/content/2021-05/14/content_5606463.htm
Original Title: 中华人民共和国民办教育促进法实施条例
Implementing Regulations for the Law of the People’s Republic of China on the Promotion of Private Education (Revised in 2021)
Decree No.741 of the State Council
The revised Implementing Regulations for the Law of the People’s Republic of China on the Promotion of Private Education are hereby promulgated, effective September 1, 2021.
Implementing Regulations for the Law of the People’s Republic of China on the Promotion of Private Education
(Promulgated under Decree No.399 of the State Council of the People’s Republic of China on March 5, 2004, and revised under Decree No.741 of the State Council of the People’s Republic of China on April 7, 2021)
Article 1 The present Regulations are enacted in accordance with the Privately-run Education Promotion Law of the People’s Republic of China on the Promotion of Private Education (hereinafter referred to as the “Private Education Promotion Law”)
Article 2 Public organizations or individuals other than State organs may establish privately-run schools at various levels and of various types with non-state financial funds. However, they are not allowed to establish privately-run schools offering military, police, political and other education of a special nature.For the purpose of the Private Education Promotion Law and the present Regulations, the term “State financial funds” refers to the funds allocated from the public finance, or the financial funds obtained according to law and that shall be turned over to the State Treasury or a special financial account.
Article 3 The people’s governments at all levels shall, in accordance with the law, support and regulate the establishment of privately-run schools by private sectors, ensure that privately-run schools operate in accordance with the law and manage their operations independently, and encourage and guide privately-run schools to improve their quality and develop distinctive features to meet the demand for diversified education.Any public organization or individual that has made outstanding achievements in the establishment of privately-run schools or has made outstanding contributions to the development of the undertakings of private education shall be rewarded and commended in accordance with the relevant regulations of the State.
Article 4 Privately-run schools shall adhere to the leadership of the Communist Party of China, adhere to the socialist orientation in running schools, adhere to the public welfare nature of education, strengthen the education on socialist core values for educatees, and fulfill the fundamental task of morality education.The grassroots organizations of the Communist Party of China in privately-run schools shall implement the guidelines and policies of the Party, participate in the major decisions of the schools and exercise supervision in accordance with the laws, administrative regulations and the relevant regulations of the State.
Chapter 2 Establishment of Privately-run Schools
Article 5 Any public organization or individual other than a State organ may solely or jointly establish a privately-run school. Where a privately-run school is jointly established, an agreement on the joint establishment of the school shall be concluded, specifying the mode of cooperation, the rights and obligations of each party and the way of dispute settlement.The State encourages the establishment of privately-run schools in accordance with law by means of donation, establishment of foundations, etc. Where a privately-run school is established by means of donation or otherwise and there is no founder, the founder ‘s rights and duties in the process of running the school shall be performed by the promoter.
No foreign-funded enterprise established within the territory of China or social organization with the foreign party as its actual controller may founder, participate in the foundership or actually control any privately-run school to provide compulsory education; and the establishment of any other type of privately-run school shall comply with the provisions of the State on foreign investment.
Article 6 Any public organization or individual that establishes a privately-run school shall have good credit status. To establish a privately-run school, the capital contribution may be made in cash or in kind, or with the right to use the land for construction, intellectual property rights and other non-monetary property that can be valued in money and can be transferred in accordance with the law, except for the property that shall not be taken as capital contributions according to laws or administrative regulations.
Article 7 Any government-run school that provides compulsory education may not establish or participate in the establishment of a privately-run school, nor may it be transformed into a privately-run school. No other government-run school may establish or participate in the establishment of a for-profit privately-run school. However, a government-run school that provides vocational education may, by attracting the capital, technology, management and other elements of enterprises, establish or participate in the establishment of for-profit privately-run schools that provide vocational education.Any government-run school that establishes or participates in the establishment of a privately-run school shall not use any financial fund of the State, shall not affect its teaching activities, shall not participate in the establishment of a school only by way of brand output, and shall obtain the approval of the competent authorities. Any government-run school that establishes or participates in the establishment of a non-profit privately-run school shall not acquire or acquire in disguised form any proceeds from running the school by way of management fees or otherwise.
Any privately-run school established by a government-run school or established with the participation of a government-run school shall be an independent legal person, shall have a campus and basic educational and teaching facilities separated from the government-run school, shall have an independent team of full-time teachers, shall conduct accounting independently in accordance with the uniform accounting system of the State, shall enroll students independently and shall issue academic certificates independently.
A government-run school that establishes or participates in the establishment of a privately-run school may enjoy the rights and interests of a founder in accordance with the law and shall perform the obligation to manage State-owned assets in accordance with the law.
Article 8 No local people’s government may take advantage of any State-owned enterprise or government-run educational resource to establish or participate in the establishment of any privately-run school that provides compulsory education.Where a privately-run school is established with the participation with State-owned assets, it shall employ an intermediary with the qualification of appraisal in accordance with the provisions of the State on the supervision and administration of State-owned assets to conduct the appraisal according to law, determine the reasonable amount of capital contributions in light of the appraisal results, and file the same with the institution responsible for the supervision and administration of such State-owned assets for the record.
Article 9 The State encourages enterprises to establish or participate in the establishment of any privately-run school that provides vocational education in accordance with law by way of sole proprietorship, joint venture or cooperation.
Article 10 Whoever establishes a privately-run school shall timely and fully fulfill the obligation of making capital contributions. During the existence of a privately-run school, the founder thereof shall not withdraw the capital contributions or misappropriate the funds for running the school.A founder may, in accordance with law, raise funds to establish a for-profit privately-run school, the funds so raised shall be mainly used for running the school and shall not be used for any other purpose without approval, and the founder shall fulfill the obligation of information disclosure in accordance with relevant provisions. No privately-run school or the founder thereof may, under sponsor fee or any other item, collect or collect in disguised form any fees related to the enrollment from students or their parents.
Article 11 The founder of a privately-run school shall, in accordance with law, formulate the articles of association of the school and be responsible for the election of the members of the first council, board of directors or any other decision-making body of the school.The founder may, in accordance with the procedures and requirements as prescribed in laws, regulations and the articles of association of the school, attend or appoint a representative to participate in the council, board of directors or any other decision-making body of a privately-run school, and shall, in accordance with the power as prescribed in the articles of association of the school, exercise the corresponding decision-making and management rights.
Article 12 Where the founder of a privately-run school is changed, an agreement on change shall be concluded. However, such change shall not involve the property of the school as a or affect the development of the school, nor shall it impair the rights and interests of teachers and students; where the founder of an existing privately-run school is changed, an agreement on the change of proceeds may be reached upon on the basis of the lawful rights and interests enjoyed by the founder according to law and the agreement concluded with the successive founder.Where the founder of a privately-run school no longer meets the statutory conditions, it shall, within six months, propose the change to the examination and approval authority; in case of failure to make the change at the expiration of the time limit, it shall be ordered by the examination and approval authority to make the change.
Where the founder of a privately-run school is a legal person, its controlling shareholder (s) and actual controller(s) shall meet the conditions for establishment of a privately-run school provided by laws and administrative regulations. The change of controlling shareholder (s) and actual controller(s) shall be filed with the competent authority for record and announced to the public.
Where the change of a founder meets the statutory conditions, the examination and approval authority shall process it within the prescribed time limit.
Article 13 Where several privately-run schools are established or actually controlled at the same time, the founder(s) or actual controller(s) shall possess the funds, personnel, organizational structure and other conditions and capabilities which are compatible with the school running activities to be carried out, and shall be responsible for the administration and supervision of the privately-run school(s).Where the founder(s) or actual controller(s) of several privately-run schools established or actually controlled at the same time provide the privately-run schools with teaching materials, courses, technical support and other services and organize educational and teaching activities in accordance with the relevant provisions of the State, they shall comply with relevant provisions of the State and establish corresponding quality standards and guarantee mechanism.
Where several privately-run schools are established or actually controlled at the same time, the founder(s) or actual controller(s) shall ensure that the schools independently carry out school running activities in accordance with the law and all the assets during the period of existence shall be managed and used by the schools in accordance with the law; they shall not change the nature of the non-profit privately-run schools established or actually controlled or directly or indirectly obtain proceeds from running the schools, nor shall they abuse their dominant market position to eliminate or restrict competition.
No social organization or individual may, by means of merger, acquisition, agreement-based control, etc., control any privately-run school that provides compulsory education or any non-profit privately-run school that provides pre-school education.
Article 14 Any institution that carries out the examinations recognized by the State, such as educational examinations, vocational qualification examinations and vocational skill level examinations establishes or participates in the establishment of any privately-run school related to the examinations conducted by it shall comply with the relevant provisions of the State.
Article 15 The authority to examine and approve the establishment of a privately-run school shall be subject to the relevant provisions of laws and regulations.Local people’s governments and the relevant departments thereof shall perform their duties to provide compulsory education in accordance with the law. The establishment of a privately-run school to provide compulsory education shall comply with the local plan on the development of compulsory education.
Article 16 The State encourages privately-run schools to conduct educational activities online by making use of Internet technologies.The educational activities carried out online by making use of Internet technologies shall be in compliance with the relevant laws and administrative regulations of the State on Internet administration. A privately-run school carrying out educational activities online by making use of Internet technologies shall obtain the corresponding school-running permit.
A privately-run school that conducts educational activities online by making use of Internet technologies shall establish and implement an Internet security administration system and technical measures for security protection in accordance with the law. If it finds any information whose release or transmission is prohibited by laws or administrative regulations, it shall immediately stop the transmission thereof, take disposal measures such as deletion so as to prevent the information from spreading, keep relevant records and report the same to the relevant competent authorities .
When conducting educational activities online by making use of Internet technologies, foreigners shall comply with the relevant laws and administrative regulations on education and the administration of foreigners working in China.
Article 17 Where the founder of a privately-run school completes the preparations for the establishment of the school within 3 years from the day when it obtains the written approval for preparing to establish the school, it may file an application for the formal establishment of the school.A privately-run school may not enroll students during the preparation period.
Article 18 Where an application for the formal establishment of a privately-run school that provides education for academic credentials is filed, the examination and approval authority shall, after accepting the application, organize an expert committee to make an appraisal, and the expert committee shall provide advisory opinions.
Article 19 The articles of association of a privately-run school shall include the following main items:(I) The name, domicile and address of the school, and the nature of the legal person;
(II) The rights and obligations of the founder, and the measures for the change of the founder and the transfer of the rights and interests of the founder;
(III) The aim, development orientation, level, type, scale and form of the school;
(IV) The start-up capital and registered capital of the school, and the source and nature of the assets, etc.;
(V) The methods for the formation, composition, term of office and rules of procedure of the council, the board of directors or any other form of decision-making body and supervisory body;
(VI) The procedures for the person-in-charge or representative of the Party organ of the school to be a member of the decision-making body and the supervisory body of the school;
(VII) The legal representative of the school;
(VIII) Causes for the school’s self-termination; The methods and procedures for disposal of the remaining assets; and
(IX) The procedures for modifying the articles of association.
A privately-run school shall make its articles of association known to the public and shall make a public announcement before modifying its articles of association to solicit the opinions of the interested parties. After the modifications are completed, they shall be reported to the competent authorities for filing or approval.
Article 20 A privately-run school may have only one name.The name of a privately-run school shall be in compliance with the provisions of the relevant laws and administrative regulations, shall not damage the public interests, and shall not contain any word that may lead to ambiguity or the name of any other legal person that may mislead the public. A for-profit privately-run school may use the abbreviation of the legal person approved by the examination and approval authority on its plaques, transcripts, graduation certificates, certificates of completion, degree certificates and the relevant certificates, enrollment advertisements and brochures.
Article 21 The start-up capital and registered capital of a privately-run school shall be appropriate to the type, level and scale of the school. When a privately-run school is officially established, its start-up capital and registered capital shall be paid in full.
Article 22 The examination and approval authority shall issue a school-running permit to a privately-run school approved to be officially established and make it known to the public.The term of the school-running permit shall be appropriate to the level and type of the privately-run school. Where a privately-run school has committed no act in violation of laws or regulations within the term of permit, the permit may be automatically extended or exchanged for a new one at the expiration of the term of permit.
The administrative measures for the school-running permits for privately-run schools shall be respectively formulated by the administrative department of education under the State Council and the administrative department for human resources and social security under the State Council according to the division of their duties.
Article 23 Where a privately-run school intends to add any new school area, it shall apply to the examination and approval authority for the alteration of its address; where a branch of the privately-run school is to be established, a separate application for the school-running permit shall be separately submitted to the examination and approval authority at the place where the branch is located, and shall be filed with the original examination and approval authority for the record.
Article 24 Where a privately-run school applies for registration as a legal person in accordance with the provisions of relevant laws and administrative regulations, the registration authority shall process the application according to law.
Chapter 3 Organizations and Activities of Privately-run Schools
Article 25 The person in charge of the council, the board of directors or a decision-making body of any other form of a privately-run school shall be of the nationality of the People’s Republic of China, have political rights and full capacity for civil conduct, reside within the territory of China, act with integrity, and have no record of intentional crime or bad employment record in the education field.The legal representative of a privately-run school shall be the person in charge of the decision-making body or the principal of the school.
Article 26 The council, the board of directors or a decision-making body of any other form of a privately-run school shall be jointly composed of the founders or their representatives, the principal, the head of the Party organization, and the representatives of the teachers and staff members. The council, the board of directors or a decision-making body of any other form of a privately-run school are encouraged to absorb representatives from the general public and shall have independent members of the council or independent directors if necessary. The members of the council, the board of directors or a decision-making body of any other form of a privately-run school providing compulsory education shall have the nationality of the People’s Republic of China, and shall have the representatives appointed by the examination and approval authority.The council, the board of directors or a decision-making body of any other form of a privately-run school shall convene at least twice a year. Upon proposal by more than one third of the members, an interim meeting of the council, the board of directors or a decision-making body of any other form may be convened. No resolution on any of the following important matters shall be adopted unless it is approved by more than two thirds of the members:
(II) The appointment or dismissal of the principal;
(III) The modification of the articles of association of the school;
(IV) The formulation of development plans;
(V) The examination and approval of budgets and final accounts;
(VI) The decision on the division, merging and termination of the school; and
(VII) Other important matters as prescribed in the articles of association of the school.
Article 27 A privately-run school shall establish a supervisory body. The supervisory body shall include representatives from the grassroots Party organization, and the number of staff representatives shall not be less than one third. A privately-run school with less than 20 teachers and staff members may have only one or two supervisors.The supervisory body shall supervise school running activities in accordance with the relevant provisions of the State and the articles of association of the school. The person-in-charge or supervisors of the supervisory body shall sit on the meeting of the decision-making body of the school.
The members of the council, the board of directors or a decision-making body of any other form and their close relatives shall not concurrently serve as members or supervisors of the supervisory body.
Article 28 The principal of a privately-run school shall independently exercise his powers on education, teaching and administrative management according to law.The principal of a privately-run school shall put forward a plan on the establishment of the school’s internal organizational structure and submit it to the council, the board of directors or a decision-making body of any other form for approval.
Article 29 A privately-run school shall, in accordance with the laws, administrative regulations and the relevant provisions of the State, carry out educational and teaching activities at its own discretion. Where any overseas teaching material is used, the relevant provisions of the state shall be complied with.A privately-run school that carries out higher education or secondary vocational technical education for academic credentials may, in accordance with its purpose and training objective, independently set up majors and courses and select teaching materials.
A privately-run school that carries out ordinary senior high school education or compulsory education may, on the basis of the national curriculum standards, offer distinctive courses on its own and implement educational and teaching innovation. The courses offered independently shall be filed with the competent education authority for the record. A privately-run school that carries out compulsory education may not use any teaching material from abroad.
A privately-run school that carries out pre-school education shall, when carrying out nursing care and educational activities, follow the law of children’s physical and mental development and set up and develop courses that take the form of games and activities as the main form.
A privately-run school that carries out vocational qualification training or vocational skill training with occupational skills as the main form may carry out training activities under the national occupational standards and the relevant requirements on vocational training corresponding to the training specialty (profession or type of work), and may not instigate or organize trainees to evade supervision and administration or obtain the vocational qualification certificate or achievement certificate by improper means.
Article 30 A privately-run school shall, in accordance with the commitments made in its enrollment brochures or enrollment advertisements, offer corresponding courses, carry out educational and teaching activities, and ensure the educational and teaching quality.A privately-run school shall provide school buildings and educational and teaching facilities and equipment that meet the standards.
Article 31 A privately-run school that carries out pre-school education or education for academic credentials has the same enrollment right as a government-run school of the same grade and category. It may independently determine the enrollment standard and method within the enrollment scale as approved by the examining and approving authority and may enroll students at the same time as that by a government-run school.A privately-run school that carries out compulsory education shall enroll students within the jurisdiction of the examining and approving authority, and such enrollment shall be incorporated into the unified administration at the place where the examining and approving authority is located. A privately-run school that carries out ordinary senior high school education shall enroll students mainly from the city divided into districts where the school is located, and may enroll students from other regions if it complies with the relevant provisions of the administrative department for education of the people’s government of a province, autonomous region or municipality directly under the Central Government. It shall abide by the relevant provisions of the state when enrolling students to receive higher education for academic credentials.
The administrative department for education and the administrative department for human resources and social security of a people’s government at or above the county level shall provide equal treatment to privately-run schools from other regions that enroll local students, and shall not set up cross-regional barriers to enrollment or impose regional blockades.
When enrolling students, a privately-run school shall abide by the enrollment rules, maintain the enrollment order, and enroll students in an open, fair and impartial manner. A privately-run school that carries out compulsory education shall not organize or organize in disguised form disciplinary knowledge entrance examinations or enroll students in advance.
A privately-run school shall abide by the relevant provisions of the state when enrolling overseas students.
Article 32 A privately-run school that carries out higher education for academic credentials that meets the requirements for conferring degrees may, after being examined and approved in accordance with the provisions of relevant laws and administrative regulations, obtain the corresponding qualification for conferring degrees.
Chapter 4 Teachers and Educatees
Article 33 The teachers or teaching staff employed by a privately-run school shall possess the corresponding qualifications for teachers or other corresponding professional qualifications and requirements.A privately-run school shall have a certain number of full-time teachers. In particular, a privately-run school that carries out pre-school education or education for academic credentials shall be equipped with full-time teachers in accordance with the relevant provisions of the state.
A privately-run school is encouraged to innovate the ways of appointing teachers and improve the teaching efficiency and level by means of information technology.
Article 34 A privately-run school may employ teachers and other staff members by itself and shall sign labor or employment contracts with the employed persons according to law so as to clarify the rights and obligations of both parties.A privately-run school that employs a full-time teacher shall, in addition to the necessary clauses stipulated according to law, stipulate the teachers’ posts and requirements, teachers’ ethics and professional assessment methods, welfare benefits, training and continuing education, etc. in the contract.
No teacher of a government-run school may concurrently hold a post in a privately-run school without the consent of the school where he works.
A privately-run school that employs any foreigner shall comply with the relevant provisions of the state.
Article 35 A privately-run school shall establish a teacher training system so as to provide conditions for the employed teachers to receive corresponding ideological and political trainings and professional trainings.
Article 36 A privately-run school shall guarantee the treatments for teachers and staff members according to law, pay wages in full amount and on time according to the type of legal person as registered by the school and pay social insurance premiums and housing accumulation funds in full amount. The state encourages privately-run schools to establish supplementary endowment insurances such as occupational annuities or enterprise annuities for teachers and staff members according to relevant provisions.A privately-run school that carries out pre-school education or education for academic credentials shall set up a dedicated fund or fund by taking a certain proportion of tuition revenue, which shall be managed by the school and used for giving occupational incentives to teachers and staff members or increasing treatment guarantee.
Article 37 The administrative department for education shall, jointly with the relevant departments, establish a system for archival filing of the labor or employment contracts of the full-time teachers of privately-run kindergartens, primary and secondary schools, establish a uniform archive to record the years of teaching and service of the teachers, carry out overall planning and uniform administration in such aspects as training, examination, appraisal and engagement of professional and technical titles, commendation and reward, and protection of rights, etc., and treat them equally with the teachers engaged by government-run kindergartens, primary and secondary schools.Privately-run vocational schools and institutions of higher learning may, in accordance with the relevant provisions of the State, carry out appraisal and engagement of teachers’ professional and technical titles independently.
The administrative department for education shall, jointly with the relevant departments, improve the system for administration so as to ensure the reasonable flow of teachers between government-run schools and privately-run schools, and direct and supervise privately-run schools to establish and improve the system of congresses of teachers and staff members.
Article 38 A privately-run school that provides education for academic credentials shall establish a system for the administration of school roll and teaching and report it to the competent authorities for archival filing.
Article 39 A privately-run school and its teachers, staff members or educatees enjoy the same rights as a government-run school and its teachers, staff members or educatees in applying for the relevant scientific research projects or subjects set up by the government. The relevant project administration department shall appropriate in time and in full the funds for scientific research projects or subjects in accordance with the relevant provisions.The people’s governments at all levels shall ensure that the educatees of privately-run schools enjoy the same rights as those of government-run schools of the same grade and category in such aspects as admission into schools of a higher grade, employment, preferential treatment in society, being elected as advanced students through public appraisal and obtaining student loans or scholarships, etc.
A privately-run school that provides education for academic credentials shall establish a system for financial aid and reward for students, and shall, at a rate which shall not be lower than that for a local government-run school of the same grade and category, take a corresponding fund from the tuition revenue for financial aid and reward for students.
Article 40 The administrative departments for education, the administrative departments for human resources and social security and other relevant departments shall offer equal opportunities to the privately-run schools, and their teachers, staff members and educatees when granting prizes through public appraisal, organizing artistic and sports activities and subjects, bid invitation for projects.
Chapter 5 Assets and Financial Management of Privately-run Schools
Article 41 Privately-run schools shall, in accordance with the Accounting Law of the People’s Republic of China and the unified accounting system of the State, conduct accounting and prepare financial statements.
Article 42 Privately-run schools shall establish a cost accounting system for running schools, and reasonably determine the charging items and standards on the basis of the school-running costs, market demands and other factors, in compliance with the principles of fairness, lawfulness and good faith and in consideration of the economic benefits and social benefits. The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may set a ceiling for the fees charged by non-profit privately-run schools that the government-run schools participate in the establishment thereof，that use state-owned assets, or that receive government subsidies per student.
Article 43 The supervision and administration of the state-owned assets among the assets of privately-run schools shall be carried out in accordance with the relevant regulations of the State.The use and management of the donated property received by privately-run schools according to law shall be subject to the relevant laws and administrative regulations.
Article 44 A non-profit privately-run school shall use the account filed with the relevant competent authorities for the record when it collects fees or carries out activities. The relevant competent authorities shall supervise the account.All the income of a for-profit privately-run school shall be incorporated into the bank settlement account opened by the school, and the distribution of school-running balance shall be made after the annual financial settlement.
Article 45 A privately-run school providing compulsory education shall not conduct any transaction with any interested related party. Where any other privately-run school conducts any transaction with any interested related party, it shall follow the principles of openness, fairness and impartiality, fix the price reasonably and regulate the decision-making, and shall not damage the state interests, the interests of the school or the rights and interests of the teachers and students.Privately-run school shall establish an information disclosure system for their transactions with interested related parties. The departments of education, human resources and social security, finance and other relevant departments shall strengthen the supervision over the agreements entered into by and between non-profit privately-run schools and their interested related parties and review related-party transactions on an annual basis.
The interested related parties as mentioned in the preceding paragraph refer to the founder, actual controller, principal, members of the council, director, supervisor, financial person-in-charge and other persons of a privately-run school, and any organization or individual that has the relationship of mutual control and influence with the above-mentioned organization or individual, which may lead to the transfer of the interests of the privately-run school.
Article 46 At the end of each fiscal year, a privately-run school shall entrust a public accounting firm to audit its annual financial report. In the case of a non-profit privately-run school, 10% or more of its audited annual increase in non-restricted net assets shall be set aside as the development fund for the development of the school; while for a for-profit privately-run school, 10% or more of its audited annual net profits shall be set aside as the development fund for the development of the school.
Chapter 6 Administration and Supervision
Article 47 The local people’s governments at or above the county level shall establish the system of joint meetings for the work relating to private education. The departments of education, human resources and social security, civil affairs, market supervision and administration, etc. shall, according to their duties and jointly with the relevant departments, establish the system of annual inspection and annual report of privately-run schools and improve the routine supervision mechanism.The administrative departments for education, the administrative departments for human resources and social security and the relevant departments shall establish the credit archives of privately-run schools and the practice credit system for the founders and principals, record the conditions of law enforcement supervision over privately-run schools and the results of punishments and handling, which shall be filed after being signed by the law enforcement and supervision officials, and shall be disclosed to the public in accordance with laws and regulations. The relevant credit archives and credit records shall be incorporated into the national credit information sharing platform and the national enterprise credit information publicity system in accordance with the law.
Article 48 The examination and approval authority shall timely disclose the information on the founder, school-running conditions and other examination and approval information of a privately-run school.The administrative departments for education and the administrative departments for human resources and social security shall, according to the division of responsibilities, regularly organize the evaluation of the school-running level and educational quality of privately-run schools or entrust a third party to do so. The evaluation results shall be disclosed to the public.
Article 49 The administrative departments for education and the relevant departments shall formulate an information disclosure list of privately-run schools that provide pre-school education and education for academic credentials, supervise privately-run schools to regularly disclose relevant information on school-running conditions and educational quality to the public.For-profit privately-run schools shall disclose relevant information through the national credit information sharing platform and the national enterprise credit information publicity system.
The relevant departments shall support and encourage privately-run schools to establish trade organizations in accordance with the law, study and formulate corresponding quality standards, establish an authentication system, and formulate and popularize the model contract texts that reflect the rules and special requirements of the trade.
Article 50 Where a privately-run school is terminated, it shall return the school-running permit, go through the formalities for deregistration with the registration authority and make it known to the public.Where a privately-run school requests to terminate itself, it shall, six months in advance, make an announcement on the proposed termination and formulate a plan for termination in accordance with the law and its articles of association.
Where a privately-run school has no actual acts of enrolling students or running school, it shall be naturally abolished upon expiration of the school-running permit, which shall be announced by the examination and approval authority. After organizing liquidation by itself, a privately-run school shall complete deregistration formalities with the registration authority.
A privately-run school that has been terminated because it cannot continue due to insolvency shall apply to a people’s court for bankruptcy liquidation.
Article 51 The educational supervision and guidance department of the State Council and the authorities in charge of educational supervision and guidance of the people’s governments of provinces, autonomous regions and centrally-administered municipalities shall supervise and inspect the fulfillment of their statutory duties of supporting and regulating the development of privately-run schools by the local people’s governments at or above the county level and the relevant departments.The institutions responsible for the educational supervision and guidance of the peoples governments at or above county levels shall carry out the supervision and guidance over privately-run schools according to law and announce the results of such supervision and guidance, and establish a system of responsible supervision of privately-run primary and secondary schools and kindergartens.
Article 52 The people’s governments at all levels and the relevant departments shall, in accordance with the law, improve the policies for supporting privately-run schools in accordance with the law and give priority to those privately-run schools that are of high quality, with distinctive features and remarkable social benefits.The local people’s governments at or above the county level may, by reference to the standards for funds such as the average expenses per student in government-run schools of the same level and category, offer appropriate subsidies to non-profit privately-run schools.
The local people’s governments shall give priority to non-profit privately-run schools in leasing or transferring their idle State-owned assets.
Article 53 A privately-run school may, in accordance with the law, name its school building or any other educational and teaching facilities or living facilities after a donator. Where a donator has made special contributions to the development of a privately-run school, in the case of a privately-run school providing higher education for academic credentials, upon the ng approval of the administrative department of education under the State Council in accordance with the conditions provided for by the State, the said school may name the school after the donator; while any other privately-run school may, upon the approval of the administrative department for education or the administrative department for human resources and social security of the local people’s government of the province, autonomous region or municipality directly under the Central Government in accordance with the conditions provided for by the State, name the school after the donator.
Article 54 Privately-run schools enjoy preferential taxation policies; in particular, non-profit privately-run schools enjoy the same preferential taxation policies with those for government-run schools.
Article 55 Local people’s governments shall take into account the development needs of local privately-run schools when formulating the plans for comprehensive utilization of idle schools.Where a non-profit privately-run school is newly constructed or expanded, the local people’s government concerned shall give it preferential treatment in the use of land by allocation or other means, according to the same principles as that for government-run schools.
With regard to the land to be used by a privately-run school that provides pre-school education or education for academic credentials, the local people’s government concerned may supply the land by means of agreement, bid invitation, auction, etc. according to lawa, or by means of long-term lease, lease before transfer, or combination of lease and transfer. The land granting price or rent may be paid by installments within the prescribed time limit as agreed upon in the contract.
Article 56 Where a privately-run school that is established in a western region, remote region or minority nationality region applies for a loan for its own development, it may enjoy the relevant preferential credit policies of the State.
Article 57 A local people’s government at or above the county level may, in light of the specific circumstances within its jurisdiction, set up a special fund for the development of privately-run schools, which shall be used to support privately-run schools in improving their educational quality and school running level, and to reward the founders, etc.The State encourages all sectors of society to establish foundations or special funds for the development of privately-run schools, in order to support the development of privately-run schools.
Article 58 A people’s government at or above the county level may, as required for pre-school education, compulsory education or other public educational services within its jurisdiction, enter into an agreement with a privately-run school and authorize it to undertake corresponding educational tasks by means of purchasing services or otherwise.Where a privately-run school is authorized to undertake universal pre-school education, compulsory education or other public educational tasks, the corresponding educational funds shall be appropriated under the authorization agreement concluded at the relevant educational stages.
Article 59 Local people’s government at or above the county level may, by means of government subsidies, substituting subsidies with awards, etc., encourage and support non-profit privately-run schools to guarantee the benefits of teachers.
Article 60 The State encourages and supports insurance institutions to offer insurance products suitable for privately-run schools and explore the establishment of trade mutual insurance and other mechanisms to provide risk security for handling major accidents, dealing with the aftermath of the termination of privately-run schools, safeguarding the rights and interests of teachers and staff members by privately-run schools.Financial institutions may develop financial products suitable for the characteristics of privately-run schools on the premise of controllable risks. Privately-run schools may raise funds by using their future business revenue, intellectual property rights, etc.
Article 61 In addition to the support and reward measures specified in the Private Education Promotion Law and the present Regulations, the people’s government of a province, autonomous region or municipality directly under the Central Government may, in light of the actual circumstances, formulate support and reward measures for the promotion of the development of privately-run schools within its jurisdiction.When implementing the reform of classified management of existing privately-run schools, the people’s governments at all levels and the relevant departments shall take into full account the relevant historical and actual conditions, protect the legitimate rights and interests of the educatees, teachers and staff members and founders, and ensure the smooth and orderly progress of the reform of classified management of privately-run schools.
Article 62 Where the founder or actual controller, any member of the decision-making body or supervisory body of a privately-run school falls under any of the following circumstances, he/she shall be ordered to make corrections within a time limit by the administrative department for education, the administrative department for human resources and social security or any other relevant department of the people’s government at or above the county level according to the division of duties, and the illegal gains, if any, shall be confiscated after the fees collected are returned; if the circumstances are serious, the offender shall not become the founder or actual controller, a member of the decision-making body or supervisory body of another privately-run school within one to five years; if the circumstances are especially serious with adverse social impact, the offender shall not become the founder, actual controller or a member of the decision-making body or supervisory body of another privately-run school permanently; if a violation of public security administration is constituted, the offender shall be imposed a public security administration punishment by the public security organ according to law; if a crime is constituted, the offender shall be investigated for criminal liability according to law:(I) Illegally raising funds by taking advantage of the school running, or charging fees associated with school enrollment;
(II) Failing to perform the obligation of capital contribution in full amount and on time, or surreptitiously withdrawing the capital or misappropriating the funds for running the school;
(III) Encroaching upon the legal person property of the school or illegally obtaining benefits from the school;
(IV) Conducting related-party transactions with a privately-run school providing compulsory education, or conducting related-party transactions with any other privately-run school, thus damaging the interests of the State, of the school or of the teachers and students;
(V) Forging, counterfeiting, dealing in, renting or lending the school-running permit;
(VI) Interfering in the order of the school running or illegally interfering in the decision-making or management of the school;
(VII) Changing the name, level, type or founder of the school without authorization; or
(VIII) Committing any other act that endangers the stability and safety of the school, infringes upon the legal person rights of the school or impairs the rights and interests of the teachers and staff members or educatees.
Article 63 Where a privately-run school is under any of the following circumstances, it shall be punished in accordance with Article 62 of the Private Education Promotion Law:(I) Violating the education policies of the State, deviating from the socialist orientation in running the school, or failing to ensure that the Party organization of the school performs its duties;
(II) Conducting educational and teaching activities in violation of laws, administrative regulations and the relevant provisions of the State;
(III) The council, the board of directors or any other decision-making body fails to perform its duties in accordance with the law;
(IV) Failing to take timely measures when the teaching conditions are obviously unable to satisfy the teaching requirements, or the educational and teaching quality is low;
(V) Failing to take timely measures when there is any serious hidden safety risk in the school buildings or any other educational and teaching facilities or equipment;
(VI) Infringing upon the legitimate rights and interests of the educatees, which exerts a bad influence on society;
(VII) Appointing or dismissing teachers in violation of the provisions of the State, or failing to guarantee the benefits of teachers and staff members according to law;
(VIII) Enrolling students in violation of the provisions or resorting to frauds during the enrollment process;
(IX) Altering the address of the school or establishing a branch school without authorization beyond the scope permitted for running the school;
(X) Failing to perform the obligation of disclosing such information as the conditions for running the school and the materials relating to education quality and financial status, or the publicized materials are untrue;
(XI) Failing to conduct accounting or prepare financial accounting reports according to the uniform accounting system of the State, and the management of finance and assets is in disorder, or increasing charging items or raising charging rates in violation of the laws and regulations;
(XII) Having any other act of seriously affecting the education and teaching due to haphazard administration.
Where there are otherwise provisions on the punishment against the circumstances prescribed in the preceding paragraph in laws and administrative regulations, such provisions shall prevail.
Article 64 Where a privately-run school has any of the illegal circumstances as prescribed in Article 62 of the Private Education Promotion Law or Article 63 of the present Regulations, the administrative department for education, the administrative department for human resources and social security or any other relevant department of the people’s government at or above county levels shall, according to the division of functions and duties, give a warning to the person-in-charge of the decision-making body of the school, the principal of the school and the directly liable person; if the circumstance is serious, the principal and the directly liable person shall not become the person-in-charge or the principal of the decision-making body of another privately-run school within one to five years; if the circumstance is extremely serious with bad influence on society, the person-in-charge or the principal shall not become the person-in-charge or the principal of the decision-making body of another privately-run school permanently.Where founders or actual controllers of several privately-run schools simultaneously violate the provisions of the present Regulations and are negligent in the management of the privately-run schools founded or actually controlled by them resulting in baneful influences, the education administrative department, the human resources and social security administrative department or other relevant departments at or above county levels shall order them to rectify within a time limit according to the division of functions and duties; if they refuse to rectify or the same kind of problems still occur after the rectification, they shall not establish any new privately-run schools within one to five years; if the circumstances are serious, they shall not establish any new privately-run school within ten years.
Article 65 Whoever violates the provisions of the present Regulations by establishing or participating in the establishment of a privately-run school or enrolls students in the preparatory period for establishing a privately-run school shall be punished in accordance with the provisions of Article 64 of the Private Education Promotion Law.
Chapter 9 Supplementary Provisions
Article 66 For the purpose of the present regulations, the term “existing privately-run schools” refer to the privately-run schools established before the promulgation of the Decision of the Standing Committee of the National People’s Congress on Revising the Law of the People’s Republic of China on the Promotion of Private Education on November 7, 2016.
Article 67 The support and reward measures as prescribed herein shall apply to Sino-foreign cooperative education institutions.
Article 68 The present Regulations shall come into force as of September 1, 2021.