Addressing Barriers to Education Financing in China: A Critical Analysis and Policy Pathways
Abstract
Equitable opportunities in education across different population groups and regions in China are affected by differences in education financing, despite notable policy reforms and increase in investments. This study aimed to identify evidential barriers to education financing in China, and address the implications for educational equity and policy pathways. A scoping review was conducted and reported with the PRISMA-ScR guidelines. 20 articles were screened from academic databases, and the data was thematically analysed applying Braun and Clarke six-step framework. Five emergent themes were found from the data viz. regional fiscal disparities and funding inequities, hukou-mediated exclusion and migrant-child stratification, household education burden and private investment inequality, heterogeneous effects of policy reforms, and quality stratification across educational stages and digital access. The findings revealed that differences in funding levels were shaped by educational inequality in China, and were affected by institutional resources, access to quality educational environments, and household resources. The evidential barriers appear to be interconnected, restricting the disadvantaged learners to transform educational resources into valuable educational opportunities. In conclusion, financial reforms addressing fiscal, household, institutional and quality related barriers are required for achieving educational equity in financing. However, the heterogeneity of the studies limited the generalizability of the findings, due to which longitudinal studies are demanded in future.
Downloads
References
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Chen, Y., Salagean, I., & Zou, B. (2024). Private educational expenditure inequality between migrant and urban households in China’s cities. Economies, 12(10), 277. https://doi.org/10.3390/economies12100277
Chi, W., & Qian, X. (2016). Human capital investment in children: An empirical study of household child education expenditure in China, 2007 and 2011. China Economic Review, 37, 52–65. https://doi.org/10.1016/j.chieco.2015.11.008
Ding, Q., & Wu, Q. (2023). Effects of Economic Capital, Cultural Capital and Social Capital on the Educational Expectation of Chinese Migrant Children: Q. Ding and Q. Wu. Applied Research in Quality of Life, 18(3), 1407-1432.
Guo, Y., Huang, J., & Zhao, X. (2019). Education policies and intergenerational educational mobility in China. China Economic Review, 55, 124–142.
Guo, Y., & Li, X. (2024). Regional inequality in China’s educational development: An urban-rural perspective. Heliyon, 10(4), e26249.
Han, Y., Ni, R., & Gao, J. (2023). Regional inequality of higher education development in China: A spatial analysis. Sustainability, 15(3), 1824.
Hannum, E., Liu, X., & Wang, F. (2021). Estimating the effects of educational system consolidation: The case of China’s rural school closure initiative. Economic Development and Cultural Change, 70(1), 485-528. https://www.journals.uchicago.edu/doi/full/10.1086/711654
Huang, B., Xu, C., Wang, D., & Hu, X. (2021). Compulsory education finance in China. China Review, 21(4), 259-290. https://www.jstor.org/stable/48635899
Li, Y., Wang, J., & Luo, L. (2020). Family migration and educational outcomes of migrant children in China: the roles of family investments and school quality. Asia Pacific Education Review, 21(3), 505-521. https://link.springer.com/article/10.1007/s12564-020-09639-9
Liu, D., Morgan, W. J., Zhang, X., & Wu, W. (2024). Private tutoring before and after the “double-reduction” policy in China: choices and rationale. SAGE Open, 14(2), 21582440241255864. https://doi.org/10.1177/21582440241255864
Lu, W. (2025). “No Less Than 4%”: A Policy Review of China's Fiscal Spending on Education, 2000–2020. ECNU Review of Education, 8(3), 686-703.https://doi.org/10.1177/20965311241265374
Lu, Y., & Pang, X. (2022). Parental migration and educational investment in left-behind children in China. Children and Youth Services Review, 137, 106483.
Ma, Y., Hou, X., Huang, J., Wang, W., Li, Y., Zhou, X., & Du, X. (2018). Educational inequality and achievement disparity: An empirical study of migrant children in China. Children and Youth Services Review, 87, 145–153.
Mu, R., & Du, Y. (2017). Pension expansion and educational investment in children: Evidence from urban China. China Economic Review, 45, 116–129.
Mok, K. H. (2021). Managing neo-liberalism with Chinese characteristics: The rise of education markets and Higher education governance in China. International Journal of Educational Development, 84, 102401. https://doi.org/10.1016/j.ijedudev.2021.102401
OECD. (2023). Education at a Glance 2023. https://www.oecd.org/en/publications/education-at-a-glance-2023_e13bef63-en.html
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., & Brennan, S. E. (2020). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews., 2021, 372, p. n71. DOI: Https://Doi. Org/10.1136/Bmj, 71
Pei, X., & Zhu, Y. (2025). Preschool education quality equity in China: Provincial disparities and determinants. International Journal of Educational Development, 104, 102947.
Peters, M. D. J., et al. (2020). Updated methodological guidance for the conduct of scoping reviews. JBI Evidence Synthesis, 18(10), 2119–2126. DOI: 10.11124/JBIES-20-00167
Sen, A. (1999). Freedom. Development, Oxford University Press, Oxford.
Sun, Y., Zhang, H., & Li, Q. (2024). Hukou reform and educational attainment in China: Evidence from a natural experiment. IZA Discussion Paper Series.
Tricco, A. C., Lillie, E., Zarin, W., O'Brien, K. K., Colquhoun, H., Levac, D., ... Straus, S. E. (2018). PRISMA Extension for Scoping Reviews (PRISMA-ScR): Checklist and Explanation. Annals of Internal Medicine, 169(7), 467–473. https://doi.org/10.7326/M18-0850
UNESCO. (2023). Global Education Monitoring Report 2023. https://gem-report-2023.unesco.org/
United Nations. (2015). Transforming Our World: The 2030 Agenda for Sustainable Development. https://sdgs.un.org/2030agenda
Walker, M., & Unterhalter, E. (2007). Amartya Sen's capability approach and social justice in education. Springer.
Wang, P., Li, Z., Wang, Y., & Wang, F. (2024). Unveiling the dynamics of educational equity: Exploring the third type of digital divide for primary and secondary schools in China. Sustainability, 16(11), 4868.
Wei, H. (2024). Household education expenditure in China: Patterns, inequality, and implications. ECNU Review of Education, 7(3), 734–761.
Xiang, L., & Stillwell, J. (2023). Rural–urban educational inequalities and their spatial variations in China. Applied Spatial Analysis and Policy, 16(2), 873-896. https://www.proquest.com/openview/e023d28a82b1765b44ce03f459d7c077/1?pq-origsite=gscholar&cbl=2043809
Xiang, L., Stillwell, J., Burns, L., & Heppenstall, A. (2020). Measuring and assessing regional education inequalities in China under changing policy regimes. Applied Spatial Analysis and Policy, 13(1), 91-112. https://link.springer.com/article/10.1007/s12061-019-09293-8
Xie, Y., Chen, L., & Zhang, M. (2025). Enrollment restrictions and household welfare among migrant families in China. China Economic Review, 82, 102060.
Yan, G., Peng, Y., Hao, Y., Irfan, M., & Wu, H. (2021). Household head’s educational level and household education expenditure in China: The mediating role of social class identification. International Journal of Educational Development, 83, 102400.
Yu, Z., & Zhao, L. (2021). Public education spending and household educational investment: Evidence from China Family Panel Studies. Economics of Education Review, 82, 102114
Zhang, J., Wang, R., & Lu, C. (2019). A quantitative analysis of Hukou reform in Chinese cities: 2000–2016. Growth and Change, 50(2), 589–615. https://doi.org/10.1111/grow.12284
Zhang, P., Bu, Z., Wang, Y., & Hou, Y. (2016). Education outlay, fiscal transfer, and inter-region funding equity: A county-level analysis of education finance in China. Journal of Chinese Governance, 1(4), 591–610. https://doi.org/10.1080/23812346.2016.1243378
Zhang, X., Liu, Y., & Chen, H. (2025). Urban-rural convergence in primary education development in China: Evidence from 1995–2022. International Journal of Educational Research, 128, 102442.
Zheng, Y., & Zhou, S. (2024). Migrant children and local household educational investment in urban China. China Economic Review, 79, 101955.















