Implementation Measures for the Regulations of the People’s Republic of China on Chinese-foreign Cooperation in Running Schools
Order of the Ministry of Education No. 20
The Implementation Measures for the Regulations of the People’s Republic of China on Chinese-foreign Cooperation in Running Schools, which were adopted at the Minister’s Meeting on March 1, 2004, are hereby promulgated and shall come into force as of July 1, 2004.
Minister of Education Zhou Ji
June 2, 2004
Chapter 1 General Provisions
Article 1 These Measures are formulated for the purpose of implementing the Regulations of the People’s Republic of China on Chinese-foreign Cooperation in Running Schools (hereinafter referred to as the Regulations on Chinese-foreign Cooperation in Running Schools).
Article 2 These Measures shall apply to the specific requirements for the establishment, activities and management of Chinese-foreign cooperatively-run schools and the examination, approval and administration of Chinese-foreign cooperatively-run educational projects for offering education for academic qualifications, tutoring self-taught students for examinations, supplementary teaching of school courses and pre-school education, etc. in accordance with the Regulations on Chinese-foreign Cooperation in Running Schools.
The Chinese-foreign cooperatively-run educational projects as mentioned in these Measures shall refer to educational and teaching activities in the aspects of subjects, specialties and courses, etc., which mainly aim to enroll Chinese citizens and are operated jointly by foreign educational institutions and Chinese educational institutions without establishing any educational institution.
In accordance with the provisions of the Regulations on Chinese-foreign Cooperation in Running Schools, the specific measures for examination, approval and administration of Chinese-foreign cooperatively-run educational projects for offering vocational skill training shall be otherwise formulated by the labor administrative department of the State Council.
Article 3 The State encourages cooperation in running schools between Chinese educational institutions and foreign educational institutions whose academic level as well as educational and teaching quality are universally acknowledged; it encourages cooperative educational activities in the fields of subjects and specialties that are newly developing and urgently needed in China.
The State encourages Chinese-foreign cooperation in running schools in China’s western regions and remote and poverty-stricken regions.
Article 4 Chinese-foreign cooperatively-run schools shall, in accordance with the provisions of the Law of the People’s Republic of China on Promotion of Privately-run Schools, be entitled to enjoy the support and awards given by the State to privately-run schools.
The education administrative departments shall give awards and honors to social organizations or individuals who have made great contributions to the development of Chinese-foreign cooperation in running schools.
Chapter 2 Establishment of Chinese-foreign Cooperatively-run Schools
Article 5 Chinese and foreign cooperators in running a school shall enter into a cooperative agreement on the basis of equality and negotiation.
A cooperative agreement shall contain the name and address of the proposed cooperatively-run school, the names, addresses and legal representatives of the Chinese and foreign cooperators in running the school, aim of running the school and educational objective, details and duration of cooperation, amount and way of contribution by both parties, time limit for capital payment, rights and obligations, methods for settlement of disputes and other contents.
The cooperative agreement shall have a Chinese version. In case there is a foreign version, it shall be consistent with the Chinese version.
Article 6 Chinese and foreign cooperators in running a school who apply for establishing a Chinese-foreign cooperatively-run school shall have relevant qualifications and relatively high educational quality.
Where Chinese and foreign cooperators in running a school who have already established any Chinese-foreign cooperatively-run school apply for establishing a new cooperatively-run school, the Chinese-foreign cooperatively-run school that has been established shall have passed the evaluation by the original examination and approval authority or its entrusted social intermediary organization.
Article 7 No Chinese-foreign cooperatively-run school may establish any branch school or any other Chinese-foreign cooperatively-run school.
Article 8 If it is confirmed, upon evaluation, that high-quality foreign educational resources are introduced, either the Chinese or foreign cooperator may sign an agreement with any other social organization or individual so as to receive capital contribution. Such social organization or individual may, as the representative of either the Chinese or foreign cooperator signing the agreement, be a member of the board of trustees, the board of directors or the joint managerial committee of the proposed Chinese-foreign cooperatively-run school. However, it shall not assume the chairman of the board of trustees, the chairman of the board of directors or the director of the joint managerial committee, nor participate in the educational and teaching activities of the Chinese-foreign cooperatively-run school.
Article 9 The capital contribution made by a Chinese or foreign cooperator shall be compatible with the level and scale of the proposed Chinese-foreign cooperatively-run school, and shall subject to verification pursuant to law.
The Chinese or foreign cooperator shall make capital contribution in full as scheduled in accordance with the cooperative agreement. During the existence of the Chinese-foreign cooperatively-run school, neither the Chinese nor foreign cooperator shall withdraw the capital contribution, or misappropriate the operational funds.
Article 10 With respect to the intellectual property right contributed by a Chinese or foreign cooperator, its price shall be determined by both parties of Chinese and foreign cooperators based on the principle of fairness and reasonableness or shall be evaluated by a hired social intermediary organization as agreed by both parties and relevant formalities shall be undertaken pursuant to law.
Where a Chinese educational institution contributes state-owned assets in the establishment of a Chinese-foreign cooperatively-run school, it shall, in accordance with the relevant regulations of the State, hire a social intermediary organization with assessment qualifications to evaluate such assets pursuant to law, reasonably determine the value of state-owned assets based on the assessment result and perform obligations of managing state-owned assets pursuant to law.
Article 11 Where a Chinese or foreign cooperator contributes in the form of intellectual property right, it shall submit relevant materials of such intellectual property right, including a photocopy of the intellectual property certificate, validity status, practical value, basis for price computation, the pricing agreement concluded between both parties and other relevant documents.
Article 12 In accordance with the agreements concluded between China and foreign governments or upon the requests of Chinese educational institutions, the education administrative department of the State Council and the people's governments of the provinces, autonomous regions or municipalities directly under the Central Government may invite foreign educational institutions to cooperate with Chinese educational institutions in running schools.
A foreign educational institution invited shall be an institution of higher learning or a vocational education institution renowned in the world or in the country where it is located.
Article 13 With respect to an application for establishing a Chinese-foreign cooperatively-run school offering higher education for academic qualifications at or above the regular college education, the people's government of the province, autonomous region or municipality directly under the Central Government where the proposed school is to be located shall give its opinion and then report to the education administrative department of the State Council for examination and approval.
The extent of power in examination and approval of the application for establishment of a Chinese-foreign cooperatively-run school issuing academic certificates or certificates of academic degrees of a foreign educational institution shall be implemented with reference to the provisions in Article 12 of the Regulations on Chinese-foreign Cooperation in Running Schools and the preceding paragraph.
Article 14 When applying for preparation for establishment or directly applying for formal establishment of a Chinese-foreign cooperatively-run school, the Chinese educational institution shall submit the documents as prescribed by the Regulations on Chinese-foreign Cooperation in Running Schools. Of all documents, the application report or application form for formal establishment shall be filled out in accordance with the content and format of the Application Form for the Chinese-foreign Cooperatively-run School made by the education administrative department of the State Council in accordance with Item 1 of Article 14 and Item 1 of Article 17 of the Regulations on Chinese-foreign Cooperation in Running Schools.
Article 15 In case of any of the following circumstances, the examination and approval authorities shall not approve the preparation for establishment of a Chinese-foreign cooperatively-run school and shall explain reasons in a written form:
1. Where it is in violation of public interests, historical and cultural traditions and the public welfare nature of education, and it is inconsistent with the requirements for the development of national or local educational undertaking;
2. Where either the Chinese or foreign cooperator does not meet conditions;
3. Where the cooperative agreement does not meet statutory requirements and the applicant fails to make corrections after having been informed of the circumstance;
4. Where the application documents contain any false information; or
5. There is any other circumstance under which approval may not be granted as prescribed by laws and administrative regulations.
Article 16 The articles of association of a Chinese-foreign cooperatively-run school shall specify the following issues:
1. The name and address of the proposed cooperatively-run school;
2. Educational objective, scale, type and level, etc.;
3. Sources, amount and nature of assets and financial system;
4. Whether the Chinese and foreign cooperators demand reasonable return;
5. Methods for the establishment of the board of trustees, the board of directors or the joint managerial committee, its members, power, term of office and rules of procedure, etc.;
6. Procedures for the appointment and dismissal of legal representative;
7. Forms of democratic management and supervision;
8. Reasons and procedures for school termination and liquidation methods;
9. Procedures for modifying the articles of association; and
10. Other issues that shall be specified by the articles of association.
Article 17 A Chinese-foreign cooperatively-run school shall only have one name, and its translated foreign name shall be consistent with its name in Chinese.
The name of a Chinese-foreign cooperatively-run school shall reflect its nature, level and type and shall not contain such characters as “China”, “Chinese” and “national”. It shall not violate laws and administrative regulations of China, nor impair public interests.
The name of a Chinese-foreign cooperatively-run school without the legal person status shall contain the title of a Chinese institution of higher learning.
