Abstract
The lack of public funding available for schools in China is a serious problem. To alleviate this situation, the government urges schools to engage in ‘creating income’ by running factories, opening shops, renting out school premises, etc., in order to advance educational provision and improve teachers’ welfare. This article reports upon a recent study of 21 secondary schools in an urban district of Guangzhou. It describes and analyzes how the practices identified above can improve facilities and equipment, boost morale, facilitate innovation and increase autonomy at the school level. In addition, it examines some of the problems that may be generated by such practices.

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