Over the past few years, the number of private schools in China has grown rapidly, numbering more than 54,000 by the end of 2000 and likely far more today. These private schools have sprung up in response to the increased demand for primary, secondary and higher education - a demand that the government cannot afford to meet, given the size of China's student population. Now, seeking to encourage further growth of private education, the Chinese government has given them equal legal status with state-owned schools. According to the new law, this move gives those who run private schools preferential treatment when applying for loans as well as preferential tax policies.
"China declares equal status for private schools," People Daily, September 3, 2003
"China to draft law on private schools," China Daily, May 23, 2001