Many schools run by state enterprises across China are struggling for survival because their financiers are in the red, the Education Herald newspaper said Wednesday.
Schools have become a heavy burden for enterprises, many of them already weighed down by debts and the costs of a social system that still requires them to provide workers with cradle-to-grave welfare. Of China's urban elementary and high school students, 13 percent are enrolled in schools run by state enterprises.
China's once-dominant state enterprises have been eclipsed in recent years by spectacular growth in private, collective, and foreign-funded companies. In urban areas in northeastern China, 70 percent of enterprises are losing money, and the cash-strapped government is unwilling to take over the schools, the newspaper reported.
In 1994, state firms spent about $542.2 million on elementary and high school education for children of employees, accounting for about 6.5 percent of government spending on education.