The organizers of private schools shall not raise funds from students and their parents to set up private schools, and shall not publicly raise funds to set up private schools.
Social organizations or individuals other than state institutions may independently or jointly run private schools. Where a private school is jointly organized, a joint school-running agreement shall be signed to clarify the mode of cooperation, the rights and obligations of all parties and the dispute settlement method.
The state encourages the establishment of private schools in accordance with the law through donations and the establishment of foundations. Private schools are organized by means of donations. If there is no sponsor, the rights and responsibilities of the sponsor in the process of running the school shall be fulfilled by the sponsor.
Foreign-invested enterprises established in China and social organizations with the foreign party as the actual controller shall not establish, participate in or actually control private schools that implement compulsory education; The establishment of other types of private schools shall conform to the provisions of the state on foreign investment.