Summary:
China's Ministry of Education has recently issued its annual budget plan for 2017. Compared to 2016, forecast central government education spending has increased by around 2.7 per cent to around RMB 131 Bn (£15 Bn). In particular, the budget for supporting both inbound and outbound international education has increased significantly. Spending on central government scholarships for Chinese students studying abroad increased by 9 per cent to RMB 321 Mn (£37 Mn), while the budget for scholarships for overseas students studying in China grew by 20 per cent to RMB 472 Mn (£54 Mn). In both cases, the reason given was an increase in student numbers.

In a related announcement from the China Scholarship Council, 10 key fields related to the manufacturing sector will be prioritised in state-funded study abroad schemes, in order to align with the “Made in China 2025” and “Guidelines for Manufacturing Talent Development and Planning” strategies. These 10 fields include the new information technology industry; high-grade CNC machine tools and robotics; aerospace equipment; marine engineering equipment and high technology ships; advanced rail transport equipment; energy saving and new energy vehicles; electric power equipment; agricultural machinery equipment; new materials; and biological medicine and high performance medical devices.

Overall, the bulk of the MoE's budget is allocated to higher education, mainly directed towards HEIs under the direct control of the MoE which currently enrol 6.4 million students. This part of the budget has grown by 2.5 per cent over 2016. In contrast, primary and secondary education are largely funded by provincial and local governments and so account for only a small part of the MoE's direct spending.

Analysis by Kevin Prest and Xiaoxiao Liu:
The increase in funding for inbound scholarships shows China’s continuing desire to become a leading destination for international students. The number of overseas students in China is growing rapidly and stood at almost 443,000 in 2016. Scholarships are a major part of the Chinese government’s strategy to attract these students, accounting for 11 per cent of all overseas students in China.

Meanwhile, the priority given to funding Chinese students going overseas in key manufacturing-related fields shows the important connections between education policy and the national priorities set out in five-year plans and other key policy documents. Excluding students funded by state-owned enterprises, the number of publicly funded students sent overseas in 2016 was around 5.5 per cent of all outbound Chinese international students.

Sources:
1. The MoE’s 2017 annual budget plan (in Chinese): http://www.moe.gov.cn/srcsite/A05/s7499/201704/t20170407_302152.html
2. Key points of the MoE’s 2017 annual budget plan (in Chinese): http://edu.people.com.cn/n1/2017/0410/c367001-29200174.html
3. Announcement of priority being given to funding for overseas studies in key manufacturing-related fields (in Chinese): http://www.csc.edu.cn/news/xinwen/837
4. SIEM News article on the Guidelines for Manufacturing Talent Development and Planning: https://education-services.britishcouncil.org/news/market-news/china-set...