Introduction to Foreign Investment in the Education Industry

Since the adoption of the reform and opening-up policy, in cooperation with the United Nations Educational, Scientific and Cultural Organization (UNESCO), United Nations International Children's Emergency Fund (UNICEF), United Nations Development Program (UNDP), World Bank and other international organizations, China has implemented more than 30 educational projects for the benefits of 30 provinces, autonomous regions and municipalities.

The World Bank has to date extended US$1.47 billion in educational program loans to China and the loans have been injected into 15 projects which covered more than one hundred thousand schools of various kinds around the country.

The cooperation between the Ministry of Education and UNDP started in early 1980's and underwent four periods. The total amount of fund from UNDP was US$15 million. The cooperation has improved China's elementary and higher educational level as well as the teachers' quality. It has especially promoted the nine-year compulsory education and girls' education in poor areas.

The cooperation between the Ministry of Education and UNICEF underwent five periods. The major projects of the first period (1982-84) concentrated on teachers' training programs and scientific educational programs. The total fund from UNICEF was US$3.43 million.

The second period (1985-89) was the implementation of the primary education projects and teachers' training programs for long distance education in poorer areas. The amount of fund from UNICEF was US$13.1 million.

The third period (1994-95) was the implementation of girls' education and long distance education projects. The amount of fund from UNICEF was US$8.4158 million.

The fourth period (1996-2000) was the implementation of elementary education and educational planning and administration projects. The amount of fund from UNICEF was US$14.895 million.

The fifth period (2001-2005) will cover elementary education in poorer areas, the early-stage education and development projects.

Regarding foreign direct investment, according to the statistics from Ministry of Education, since the Provisional Rules for Joint Schools which was promulgated by the former State Education Commission in January,1995, China has launched 657 joint schools and institutions. The joint schools have become one of the major ways for China to cooperate and exchange with their international counterparts.

According to the MOFTEC statistics, for the first nine months of 2002, foreign direct investments were approved in 16 projects in the education service sector.The contractual value was US$20.65 million and US$13.91 million were actually injected by foreign investors.