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Higher education in China experienced dramatic expansion in recent years. This paper focuses on the recent reforms and future challenges in financing the rapidly expanding Chinese higher education system. It is argued that the growing college-age population, roaring social and private demands for higher education opportunities, increasing financial needs of universities and colleges, and competing demands for resources from primary and secondary levels of education will result in serious challenges for higher education financing in China. Strategies to tackle these challenges will be discussed briefly. [ABSTRACT FROM AUTHOR]