Legal basis: People's Republic of China (PRC) Higher Education Law.
Chapter VII Higher Education Investment and Conditions Guarantee
Article 60 Higher education is based on the investment of the organizers, the educated share the training cost reasonably, and institutions of higher learning raise funds through multiple channels. The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall, in accordance with the provisions of Article 56 of the Education Law, ensure the gradual increase of the state-sponsored higher education funds. The state encourages enterprises, institutions, social organizations and other social organizations and individuals to invest in higher education.
Article 61 The sponsors of institutions of higher learning shall ensure a stable source of funds for running schools, and shall not withdraw the invested funds for running schools.