In China, according to ownership-based categories of HEIs, the higher education can be divided into two categories---State-owned or government-owned HEIs, including Regular HEIs, Independent Institutions, Higher Vocational Colleges, Adult HEIs, and non-government or private universities. Due to the long-time influence by Soviet Union and late development of private universities, it has deeply rooted in Chinese heart that government-owned is much better than private ones. Regular HEIs is the cornerstone in China's higher education, while private universities development could not be ignored.
According to the latest data(2015) of People's Republic of China Ministry of Education, total number of Chinese National Higher Institutions is 2845, including 2,553 National General Colleges and Universities and 292 Adult Higher Institutions. Government-owned HEIs are likely to receive more policy and finance support from official level.
Compared with state-owned universities, private universities' development is in an awkward position. Different with private universities in Western world, China's provide education is a complement to public universities to meet the needs for those who failed in their college entrance examination and who could not afford the tuition fees to study abroad. Due to the large population, Chinese public universities are impossible to satisfy everyone's needs. Under this condition, private universities of China come into being. The advantages of their professional setting that more in line with market requirements could not make up for the lack of financial funds and students. Actually, these two factors are equal. The source of funds for them depends largely on students' tuition fees
Except of competition from public universities and other sino-foreign cooperative private institution, the most deadly weakness is that Chinese officials deny acknowledging their degree. In Private Education Promotion Law of the People's Republic of China, it clearly indicates that "Private university degree is that national recognition of the non national education series, belonging to private colleges awarded diplomas".
Though followed by "The educated in Private colleges enjoy the same level and rights in further education, employment, social welfare, and participation in advanced selection with the educated public schools" , it can hardly compensate the flaw that the degree belonging to only private colleges awarded diplomas, but no acknowledgement by officials.