Public schools that implement compulsory education shall not establish or participate in the establishment of private schools, nor shall they be converted into private schools. Other public schools shall not hold or participate in the holding of for-profit private schools.

When a public school holds or participates in the holding of a private school, it shall not use state financial funds to affect the teaching activities of the public school, and shall not participate in running the school only by way of brand export, and it shall be approved by its competent department.

When a public school holds or participates in the holding of a non-profit private school, it shall not obtain school-running income by charging management fees or charging management fees in disguised form.

Legal basis:

Article 2 of People's Republic of China (PRC) Private Education Promotion Law clarifies that social organizations or individuals have the right to receive social education. The right subject of education and training institutions is the interest groups or individuals of non-governmental organizations, and the source of education funds mainly depends on the investment, donation, fund-raising and lending of social organizations and individuals, rather than the investment of state finance in education. Judging from the identity of its organizers, most of them are legal person organizations established according to law. Therefore, its most striking feature is profitability.