This paper analyzes educational disparity and attainment in contemporary China. Analysis of CHIPS (The Chinese Household Income Project Survey) has revealed several facts which cannot be understood from government statistics alone. First, formal education in China developed rapidly until the end of the 1980s, and educational disparity amongst the citizenry as measured by years of education has decreased. This is attributable to the execution of mandatory education laws and associated increases in investment. Second, educational disparity between generations as seen from birth cohorts is large, but is decreasing within generations. A reduction in educational disparity can be observed between men and women, and even among the east, central and western regions. Third, educational disparity between urban and rural areas is decreasing slowly, but the trend has indeed become apparent. Higher income regions show smaller educational disparities between urban and rural areas. Fourth, the educational level of Han peoples is higher than that of minority groups on the whole. However, this trend cannot　be observed in urban areas, and the correlation weakens with time. In some regions, the relationship does not hold or even reverses. Fifth, when looking at differences in qualitative educational measurements, such as college applicant population percentage by age, college applicant acceptance rate or entrance exam deviation value, educational disparities between regions and between urban and rural areas are still large. However, no significant disparity can be detected between ethnic groups or men and women. Sixth, among individuals of comparable scholarly ability, a difference in sex, ethnicity, or region results in no statistically significant change in the rate of advancement to higher education. However, the rate of educational advancement in urban areas is far and away higher than in rural areas. There is inequality in educational opportunity originating in the current hukou (household registration) system.

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This paper analyzes the reasons of the development of the Chinese photovoltaic industry. China is the largest producer of many industrial products and has become the world’s largest exporter in 2009. However, half of China’s exports are low-value-added processing trade. Only a few Chinese manufacturing firms undertake R&D (research & development) activities. The Chinese government has emphasized the transformation of economic development mode from factor-driven to innovation-driven mode and from extensive to intensive growth. For the purpose of enhancing the abilities of indigenous innovation, the Chinese government has designated high-tech industries and seven strategic emerging industries. As a high-tech and strategic emerging industry, the Chinese photovoltaic industry has achieved rapid growth and formed excess capacity over the course of only a few years. As a result, China has become the world’s largest solar photovoltaic producer and exporter. Although the Chinese government has continued to emphasize the transformation of industrial development mode from processing trade to indigenous research, many photovoltaic manufacturers import the raw materials of silicon or photovoltaic cells and then re-export them as photovoltaic modules after processing. Both the ratio of R&D Expenditure/Net Sales and the ratio of R&D Employees/All Employees of main Chinese manufacturers are low in spite of their being authorized as “High and New Technology Enterprise”. This paper finds that the rapid growth of the Chinese photovoltaic industry mainly comes from government support and preferential treatment for taxes and loans; as well as fundraising through initial public offerings in foreign stock markets, importation of production equipment, and easy environmental standards. The development mode of the Chinese photovoltaic industry is still a factor-driven instead of innovation-driven mode.

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