An amendment to the regulation on the law promoting private education will go into force on Sept 1, according to a State Council decree signed by Premier Li Keqiang.
Social organizations and individuals other than State institutions can run private schools of various levels and types by using no fiscal spending, except for schools for military, police and political education, according to the decree.
Private schools should uphold the leadership of the Communist Party of China, the circular added.
Social organizations or individuals can run private schools alone or jointly, and running through donations and foundations is encouraged.
Foreign-invested enterprises and social organizations actually controlled by the foreign party may not control or take part in the running of private schools for compulsory education.
Public schools for compulsory education may not participate in the running of private schools, nor may they convert to private schools. Other public schools cannot run for-profit private schools.
Private schools and their organizers cannot charge fees associated with admission in the name of sponsorship and other purposes, according to the decree.
No social organization or individual should control a private school for compulsory education or a non-profit private school for preschool education by means of mergers and acquisitions.
The charter of a private school must specify items, including the school name and location, rights and obligations of the organizers, school's objectives, initial funds and more.
The circular also specified requirements on composition of the members of the decision-making and supervisory bodies, as well as the education activities of private schools.
The supervisory body should include representatives of grassroots organizations of the Party, with more than one-third being faculty members, the circular said.
The regulation seeks to give equal rights to public and private educational institutions in terms of enrollment.
Relevant departments should establish a filing system of labor and employment contracts of full-time teachers in private kindergartens and primary and secondary schools.
Items and fees charged by private schools should be regulated. Private schools for compulsory education may not carry on transactions with interested parties.
Local governments at or above the county level shall establish a joint meeting system on private education for supervision and management.
Provincial-level governments can set up support and incentive measures for the growth of private education, according to the circular.
The circular also made clear the legal liability of parties involved.