Introduction

Economic modernisation, market-oriented reform, globalisation and the emerging knowledge-based society have dramatically affected China's education development and policy since the initiation of the economic reforms and the open door policy in the late 1970s. This chapter begins with a brief outline of the contrast between education policies before and after the economic reforms. Following this, education policy changes in the economic reform era are examined in relation to basic education, vocational education and higher education. The final part of this chapter assesses the impact of education policy changes on the well-being of Chinese people. It argues that the combination of the inappropriate retreat of the state from education provision and the excessive application of market principles into the education system has resulted in serious education inequality. The chapter concludes that the Chinese government has to play a more active and substantial role in the provision of compulsory education in order to achieve balanced and coordinated development.

Education policy before the economic reforms

After taking power in China in 1949, the communist government was determined to thoroughly transform the old education system, to instil a new perception of the purpose of education and to create a new educational system. Education for the children of workers and farmers became the first priority in the new China (Chen, 1999). The first step the government took in order to achieve this was the nationalisation and strict central control of existing schools and universities. Secondly, many special schools were established for workers’ and farmers’ children, including primary, middle and spare-time schools. Thirdly, campaigns were launched to increase the literacy of working people.