| Shortage of technical labours have become serious problem in many industrial nations. The economy of our country has leapt forward in recent years. The problem is especially evident. Shortage of technical labours places a serious constraint on China's economic and social development and Upgrade industries. There are many possible choices of policy to solve the problem. One important way is having acquired necessary skills by vocational training.As the national situation, the actions of government subsidy to vocational education and training are different. As the maker of regulation, establish institution of vocational education and training centers, government plays the main role in subsidy to vocational education and training. Under new circumstances, we must look closely at government and vocational education, adjust and choose government subsidy. Beginning with the mechanism, guiding by the effect of subsidy, enrich the content, innovate the pattern, solve the cheap quality policy which is caused by " offiside " and "absence" of the government.The paper starts with the basic theory of the mechanism of government subsidy to vocational education and training, analysis the meaning and feature of vocational education, elaborates the background of government subsidy, studies the mechanism of government subsidy to vocational education and training from the content, pattern and effect. Centering on three regions, it points out the present situation and the problems of Chinese mechanism of government subsidy to vocational education and training. The paper compares and summarizes the practice and experience of Germany, the United State and Australia. It chooses Shanghai X vocational school, analysis the mechanism of our country , especially the problem of subsidy effect. Finally, aiming at the existing problems, the paper offer advice from the content, pattern and effect of subsidy to optimize the mechanism of government subsidy to vocational education and training.
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