Chinese universities boasting the largest number of students in the world are endangered by severe financial crisis, a result of the rapid enrollment expansion since 1999, warned deputies to the
National People’s Congress (NPC), the top legislature.
To cater for students who flock to campus for higher education in expectation of finding a good job on graduation, universities have to borrow huge sums of money to keep things going.
“As a far as I know, there is one university that owes banks 5 billion yuan (641 million U.S. dollars). This means it should pay 300 million yuan for the interests every year,” said Hu Sishe, an NPC deputy. [Full Text]