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China's Shanghai Municipality and Jiangsu Province announce revised fee standards for international joint programmes

Summary

Earlier this year, China’s Shanghai Municipality and Jiangsu Province announced revised fee standards for international joint programmes at higher education institutions. Shanghai sets maximum fee levels based on a multiple of fees for domestic programmes in the relevant subject area, while Jiangsu's guidelines define maximum tuition fees based on type of institution and level of study.

In Shanghai, the "Shanghai municipal guidelines for managing tuition fees in Sino-foreign cooperative education" state that tuition fees for TNE programmes and institutes at public universities should be no more than three times the fee standard for domestic programmes in the same subject. These standards currently vary from 5,000 to 10,000 RMB per year for undergraduate programmes depending on the subject area, meaning that TNE fees should be capped at 15,000 to 30,000 RMB per year; postgraduate fee standards are slightly higher at 7,000 to 10,000 RMB per year.

However, Shanghai's regulations also say that this cap can be waived in three cases: programmes in subjects that meet the needs of Shanghai's economic and social development and play a supporting role in Shanghai's strategic emerging industries; programmes in subjects that are included in the "world-class universities and disciplines" project at the relevant institution; and programmes with partners that are "worldwide high-level universities", or with partners who are at a high level worldwide in the relevant subject area. In these cases, higher fee levels can be approved if the relevant institutions submit a request to the municipal education commission, municipal development and reform commission and the municipal finance bureau each year before the end of June.

Jiangsu's regulations are different from those of Shanghai, and apply only to joint programmes. The regulations set maximum annual fees of 19,000 RMB per year for diploma (higher vocational) programmes, 22,000 RMB per year for bachelor's degrees and 25,000 RMB per year for master's degrees at public HEIs, and 20,000 RMB for diploma programmes and 23,000 RMB for bachelor's programmes at private HEIs. The regulations state that universities can apply to vary these fees based on factors such as the proportion of programmes taught by overseas academics and the characteristics of the subject, but the maximum allowed increase is 20 per cent.

In both cases, regulations apply only to the portion of the course taught in China. For programmes involving a period of study outside of China, HEIs are free to charge higher tuition fees for this part of the course.

Analysis by Kevin Prest, Senior Analyst, International Education Services

Transnational education is strictly regulated in China, and government control over pricing is an important part of this regulation. As financial factors can greatly affect the sustainability of a TNE programme, UK universities should pay close attention to regulations in this area when considering whether to set up a new TNE partnership.

Although Shanghai and Jiangsu both publish their standards for TNE programme pricing, this is not always the case in all parts of China. And even when published standards exist, these often contain clauses allowing more flexible pricing in some cases. The best way for a UK HEI to understand the fees that they will be able to charge for a potential joint programme is often to look at the prices of similar programmes in the same province, in order to understand what level of fees the local pricing bureau is likely to approve.

Sources

1. Shanghai municipal guidelines for managing tuition fees in Sino-foreign cooperative education (in Chinese): http://www.shdrc.gov.cn/gk/xxgkml/zcwj/jgl/33243.htm

2. Notice of Fee Regulations for Sino-foreign Cooperative Education in Higher Education (Jiangsu, in Chinese): http://jyt.jiangsu.gov.cn/art/2018/2/26/art_38047_7494471.html