Over the past 30 years, the funding of Chinese schools has moved from a highly centralized, national funding system to one that is much more decentralized. Now, local governments are primarily responsible for the provision, administration, and funding of primary through upper secondary schools.
Chinese government is providing subsidy to education over the past 30 years, it help many of school to keep surviving. Chinese government is providing subsidy to education because of they need highly educated people in the future to increase the economic growth and keep the unemployment rate low. Perhaps Chinese government stop provide subsidy to education, children will not be educated so they will not have job opportunity in the future.
Chinese government should keep provide subsidy to education due to want more highly educated people start with a business and increase the economic growth. Also want those business to hire more workers to increase the employment rate.