According to Article 54 of the Education Law of the People's Republic of China, the state establishes a system of raising education funds with financial allocation as the main part, supplemented by other channels, and gradually increases investment in education to ensure a stable source of education funds for state-run schools.
Schools and other educational institutions established by enterprises, institutions, social organizations and other social organizations and individuals according to law shall be funded by the sponsors, and the people's governments at all levels may give appropriate support.
The main sources of education investment are the education funds in the regular income of the state and local governments and the education funds used by the central business departments and their affiliated enterprises and institutions for running their own schools.
Secondly, the state and local governments allocate education funds in financial non-recurrent income or floating financial resources.
Third, it is the taxes and fees collected for education, the tuition and miscellaneous fees collected by students in non-compulsory education stage, the expenditure for improving the conditions of running schools and the welfare of faculty and staff in the income of school-run industries, and the donation of social education funds.
There is also a part of education financing and credit from the financial system, as well as education loans, grants or investments from overseas institutions and social groups.