A revised law on private education was adopted today at the close of China's parliament National People's Congress (NPC) Standing Committee's bi-monthly session after a third reading.
China's compulsory education is a nationwide free system, supported by funding from the central government.
The system is a public service that must be provided by the government, Zhu Zhiwen, vice minister of education, at a press conference after the law's revision was finalised.
"Profit-led private schools are unsuitable for the free education programme," Zhu said.
China has about 162,700 private schools nationwide with more than 45.7 million students, according to figures from the Ministry of Education.
Currently none of the registered private primary and junior high schools are for-profit, and the law will only have impact on those who want to turn their schools into profit-led establishments, Zhu said.
The revised law, which will take effect on September 1, 2017, clearly defines for-profit and non-profit private schools and specifies different measures to support private education.
All private schools should guarantee the staff's legitimate interests in salary and welfare, and are supposed to pay social insurance contributions for their employees, according to the law.
Private schools must establish a sound internal supervision system and entrust a third-party agency to inspect their educational environment.
They should also establish an information publicity system.
Any institution found to have issued fake degrees or educational certificates, will be punished, state run Xinhua news agency reported.
"Communist Party of China groups in private schools should carry out Party activities according to the Party Constitution and strengthen Party building," read one of the articles in the revised law.
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