Sino-foreign Cooperative Education Institution Governance Research

Sino-foreign cooperational education institutions, as a form of higher level cooperational education, in the past two decades, has contributed greatly to the introduction of high quality educational resources from overseas, the enlargment of Chinese educational investment and the fulfillment of the Chinese people's diverse demands for education in the past two decades. Unfortunately, the sino-foreign cooperational education instututions have suffered from their governance flaws almost from the beginning. The governance flaws, particularly in those cooperational education institutes, where the parties are a Chinese university and a foreign individual, are mainly the problems of property rights and the houeshold tendency of the governance, consequently resulting in a series of other problems in management, administration and teaching.The unclear property right of the cooperational education institutes roots in the fact that the individual's investment in education relative to the legal person property right does not have the stock features. To make the property right clear, and then, to create a scientific governance structure, we must endue the individul investment with stock features, essentially, we should allow the foreign social organizations and individual's investment in Chinese education to gain profit.Accordingly, we must create a new form for the the cooperational education institute in which stock cooperation is the substitution of contract cooperation. The new cooperation form makes the sino-foreign cooperational education institutes more like public companies.It is necessary to reform the sino-foreign cooperation education institutes' governance structure according to the regulations of running a company, as well as thinking sufficiently about the property right structure and education's special features. First, clear the property right; second, reform the board; third, buy "gold stock" to ensure the country's political benefits and the consumer's economic benefits; forth,construct a new method of presidental recruiting and an incentive-restrictive mechanism so that the president is sure to be qualified and have relative power, responsibilities and rewards.Because the public company is based on Chinese laws, it could not harm the country's educational sovereignty; there are also the government and Chinese university's investment in the public company, it won't affect its commonwealth natures; also because we allow the indivial's investment to gain profit, it will keep a strong market power to attract foreign educational investment in China.