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Chinese universities raise tuition fees

Universities in China are increasing their tuition fees for the upcoming academic year. The East China University of Science and Technology has raised tuition fees by 54% to 7,700 yuan ($1,082) for freshmen studying science, engineering, and physical education. For liberal arts majors, the increase is 30%.

Shanghai Dianji University has announced a 40% raise in tuition for science and engineering students, while those majoring in management, economics, and literature will experience a 30% increase compared to the previous year.

In April, Shanghai raised tuition fees for the upcoming academic year for the first time in over two decades. The standard tuition fee limit is now 6,500 yuan ($913) per year for liberal arts, 7,000 yuan ($983) for science and engineering, 7,400 yuan ($1,039) for medicine, and 13,000 yuan ($1,827) for the arts. The city has also urged public universities to implement various support policies, including rewards, loans, aids, and exemptions. Additionally, they are required to allocate 4%–6% of their business income annually to subsidize students.

Rui Yang, the dean of education at the University of Hong Kong, commented that Chinese universities have maintained similar tuition fees for the past two decades. Therefore, the recent increase is justifiable considering both their historical context and the fees charged by universities in other societies.

Notably, the provinces of Sichuan and Jilin have also raised tuition fees for different majors, with Sichuan experiencing an increase of up to 41% according to local government statements.

Jiāng Xuéqín 江学勤, a Beijing-based writer and educator, stated that Chinese tuition fees are still relatively cheap on a global scale, and the increase will not have significant social impact since it primarily affects middle-class urban parents who send their children to college.

China has been striving to develop "world-class" universities and strong disciplines with Chinese characteristics, which has been emphasized by Chinese leader Xí Jìnpíng 习近平 during a Communist Party of China (CPC) Central Committee study session in May. The Chinese government has long aimed to create an elite educational system on par with Western schools to support the modernization of industries and meet national strategic needs.

Efforts to achieve this goal have intensified during Xí Jìnpíng's decade in power. Project 211, initiated in 1995, has provided funding to over 100 Chinese universities with the aim of elevating them to international academic standards by the end of the 21st century. Project 985, launched three years later, focuses on further developing the best candidates from Project 211 and currently includes 39 universities.

In 2015, the Chinese government introduced the "Double First-Class" initiative, a tertiary education development program aimed at transforming elite Chinese universities into world-class institutions by 2050.

China currently has the highest enrollment rate in higher education worldwide, with 57.8% and 44.3 million students on campus in 2021. In comparison, the percentage of 18- to 24-year-olds in the U.S. enrolled in higher education as of 2021 was 38%. The number of college graduates in China is expected to reach a record high of 11.58 million this year, according to China's State Council, marking an increase of 820,000 compared to the previous year.

However, an ongoing issue in China is that prestigious universities charge low tuition fees, while private institutions of lower quality charge much higher fees. Despite the recent hike, top-tier universities in China remain significantly cheaper than private institutions with questionable quality. Dean Rui Yang noted that this raises concerns about fairness and equality, and it is an issue that is likely to persist.

To address this issue, the Chinese government has implemented various measures. A 2022 white paper titled "Youth of China in the New Era," published by China's State Council, revealed that over 820,000 students from rural and underprivileged areas were enrolled in key universities through special enrollment plans from 2012 to 2021. The government has also continued to provide subsidies to repay student loans. Over the years, the loan limits per person have increased to 12,000 yuan ($1,686) per year for junior college and university students, and 16,000 yuan ($2,249) per year for postgraduate students.

While China strives to build elite universities, local governments face financial constraints due to mounting debt, exacerbated by three years of strict COVID-zero policies, a cooling housing market, and an economic slowdown.

An analysis of the 2022 financial results of 2,892 local government financing vehicles (LGFVs) by Rhodium Group revealed a decline in overall cash positions, from 8.7 trillion yuan ($1.22 trillion) at the end of 2021 to 7.8 trillion yuan ($1.1 trillion). Most of China's top 20 cities are facing more challenging financial conditions compared to the previous year. Among 205 cities with available financial data in 2022, half struggled to manage debt servicing costs, with interest payments consuming 10% or more of their fiscal resources.

The financial strain on local governments may make it difficult for them to offer support to university students, whether through direct funding to universities or financial aid programs. According to a report from the education ministry, the expected budget expenditure for tertiary education in 2023 has decreased by 3.7% to 102.6 billion yuan compared to the previous year.

It is worth noting that the average tuition fees for master's programs in Chinese public universities range from $2,500 to $10,000 per academic year. Private universities typically have higher tuition fees, with most courses costing under $30,000 per year, while some M.B.A. programs charge over $40,000 per year.

Despite the recent increase, Chinese universities, on the whole, continue to charge relatively low tuition fees compared to international and private institutions in China, emphasizing their affordability and accessibility.

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