Property ownership: Non-governmental higher education in China

Over the past several decades, non-governmental institutions of higher education (IHEs) in China have proliferated in response to a broad spectrum of political and social-economic demands under a broader policy of decentralization and a flourishing market economy. This study explores the issue of property ownership essential to attracting private initiatives into the sector, as well as facilitating future development within existing ones. The study focuses primarily on the legal, economic, managerial, and financial aspects of this issue, as well as consumer protection and loan acquisition. After the feasibility analysis of for-profit IHEs and their market niches in China, a discussion follows.; Regarding the relationship between the state and non-governmental IHE the findings indicate that the impact of the current accountability mechanisms required to safeguard information asymmetry provides minimal information for consumers to make informed choices. Non-governmental IHEs rely on innovative practices oriented towards customer satisfaction to boost institutional prestige and educational quality, thereby sustaining institutional growth. Typically, tuition revenues make up the largest part of institutional income. Non-governmental IHEs; therefore, search for alternative ways to finance their expansion, whether monetary or non-monetary, resulting in a complicated ownership structure. A lack of clear ownership status in some institutions restricts third-party financing and induces the institutions to set up an affiliated company to raise funds and acquire loans.; When investigating elements of property ownership between sole-proprietorship and shareholder non-governmental IHEs, the study confirms that the legal property rights of some non-governmental IHEs could become transitional, gradually shifting towards university ownership. The study argues that, in the short term, the apparent hybrid version of an ownership system, which mixes capitalism and socialism, needs to be protected by a legal framework in which economic actors can coordinate their activity within a mutually understood framework of action. While the current system allows non-profit 1HEs to receive economic returns, a model that divides the higher education sector into non-profits and for-profits may ultimately be a more realistic safeguard for non-profit benefits. These case studies further suggest that a management structure that blends traditional share governance through university council with managerial control is desirable, to address both the profitability and the altruistic concerns of the non-governmental IHEs. Furthermore, these case-study institutions represent some of the best models for other non-governmental IHEs that may lack similar financial resources or government connections, and are struggling to survive, especially in their fledgling stage.; Finally, a small program for for-profit IHEs in China is proposed, as the current regulations (which allow non-governmental IHEs to maintain a non-profit status while enjoying profit return) legitimizes "for-profit in disguise" and may further exacerbate profiteering behavior. This study concludes with a discussion of the existing property ownership system policy recommendations and suggests areas that might be explored to facilitate healthy sector development.