The Chinese Ministry of Education requires that U.S. universities seeking to establish an education arrangement in China partner with a Chinese university. The Chinese government also requires the U.S. universities to establish written agreements with the Chinese university defining the academics, governance, operations, finances, and other key aspects of the arrangement. The Chinese Ministry of Education reviews each U.S. university’s written agreement along with other application materials and authorizes approved universities and their Chinese partners to establish: Cooperative education institutions: degree-granting institutions that can be granted independent legal status. Cooperative education programs: activities take various forms and can include joint and dual degree programs. Appendix II provides a complete list of U.S. universities that have been approved to establish cooperative education institutions and cooperative education programs in China. As figure 1 shows, the number of U.S. universities that have partnered with Chinese universities to establish cooperative, degree-granting institutions has increased since 2011. Just as the number of U.S. universities operating cooperative institutions in China has grown, for the past 6 years China has been the leading country of origin for international college students in the United States, according to the Institute of International Education, with double-digit percentage increases in the past 8 years. In academic year 2014-2015, more than 300,000 students arrived in the United States from China, representing almost a third of all international students in the United States. We reviewed 12 U.S. universities that have partnered with Chinese universities to establish degree-granting institutions in China: six public universities and six private, nonprofit universities. The curriculum at each institution is taught in English, with the exception of foreign language courses. Additional information about these institutions’ students, faculty, and degree offerings is as follows. More than 6,500 total students were enrolled in the 2014-2015 academic year. Enrollment ranged from fewer than 40 to more than 3,000 students across the different universities, with about half of the institutions enrolling between 150 and 900 students. More than 90 percent of these students are Chinese, and less than 6 percent are U.S. citizens. About 60 percent of faculty, in the 2014-2015 academic year, were U.S. citizens, about 16 percent were Chinese, and the remainder were from other countries. Universities include both faculty sent from the U.S. universities’ home campus to teach at the institution in China and faculty hired specifically to teach at the institution in China. The 12 universities offer various undergraduate and graduate degrees in China, including bachelor’s degrees in accounting, business administration, computer science, engineering, English, finance, graphic design, organizational leadership, and supply chain management; master’s degrees in computer graphics and animation, engineering, global health, international studies, management studies, and medical physics; and a doctorate of engineering. Education and State are involved in different aspects of higher education arrangements in China. Education provides federal student loans, grants, and other financial aid each year through programs authorized under Title IV of the Higher Education Act of 1965, as amended. U.S. students in overseas programs are eligible for this federal financial aid under some circumstances, but Chinese and other non-U.S. students are generally not eligible. State supports various international educational grants and scholarships, some of which apply to U.S. students studying in China. In addition, State monitors and reports on human rights conditions around the world. State annually publishes country reports on global human rights practices, including academic freedom. State has reported that China’s human rights record, which has been a long-standing concern, has deteriorated in recent years, with participation in civil society curtailed and academic freedom on Chinese university campuses restricted. State’s Country Reports on Human Rights Practices for 2015 reported that Chinese government officials have instructed professors at Chinese universities to avoid discussing freedom of the press, civil rights and society, and other subjects, and have cautioned universities against using textbooks that promote Western values. In addition, the report notes that the Chinese government has increased efforts to monitor Internet usage and control Internet content, while also taking measures to restrict freedoms of speech, religion, and assembly. The Chinese government regulates the Internet by censoring or restricting access to many websites, including search engines, news outlets, and social media. In April 2016, the Chinese government passed a law regulating the activities of foreign nongovernmental organizations. According to State, this new law requires foreign nongovernmental organizations operating in China to be sponsored by a Chinese organization, to report funding and event information to the Chinese government, and to report directly to the Ministry of Public Security. In a letter to the Chinese government, a group of U.S. universities voiced their concerns regarding a previous draft version of the law, stating that the draft law was ambiguous in defining what types of foreign nongovernmental organizations would be subject to the law. The extent to which the law may impact universities remains to be determined. Academics and researchers, among others, have expressed concerns that, given these conditions, faculty, students, and others at U.S. universities in China may face constraints to their academic freedom and other key freedoms. For the purpose of this report, we define these freedoms as follows: Academic freedom: includes the ability to teach or study what one chooses, ask any questions, or freely express views in the classroom. Freedom of speech: includes the ability to express one’s opinion in print, video, in person, or through other means without interference. Freedom of information: includes the ability to access information and ideas through any medium, including the Internet, libraries, and databases. Freedom of assembly: includes the ability to gather with students and others. Freedom of worship or religion: includes the ability to practice one’s religion, read religious texts, and share one’s beliefs. The 12 U.S. universities we reviewed generally reported receiving support for their institutions in China from their Chinese partner universities and from Chinese government entities, with limited funding from U.S. government agencies and private donors. Universities reported contributions from their partner universities and from Chinese provincial and local governments for land, building construction, and use of campus facilities. Almost all of the universities said their institutions in China generated net revenue or had neutral impact on their budget. The universities we reviewed generally reported receiving material support and funding from their Chinese partner universities or from provincial and local governments to help establish and operate their institutions in China. In interviews and questionnaire responses, most universities reported being granted land, resources for construction of new buildings, and the use of the Chinese university’s campus facilities. The amount of support reported by the universities varied widely and was in some cases substantial. One university reported receiving nearly 500 acres of land and a commitment from the Chinese provincial and local governments to spend about $240 million for construction and development of facilities. The U.S. university said its Chinese partners were covering all direct expenses for the institution, including paying directly for maintenance, capital expenses, faculty and staff salaries, housing subsidies, and travel allowances. According to university administrators, in academic year 2016-2017, the institution in China will begin reimbursing the U.S. university for curriculum development, which university officials said could amount to almost $1 million in the first year. One university stated that 25 percent of the budget for its institution in China came from the government of the city where it was located, including subsidies for Chinese students’ tuition. Some U.S. universities noted that their institutions in China are entirely owned and operated by the Chinese universities, which have assumed financial responsibility, and that the U.S. universities provide primarily academic guidance to the institutions. One of these U.S. universities said its Chinese university partner committed to invest nearly $40 million to construct and equip a new building to house the institution. Another said that all costs incurred by the U.S. university during the institution’s establishment—including faculty and staff time and travel—were covered by the Chinese partner university. In their questionnaire responses, two universities reported receiving financial support from Chinese government entities ranging from $1.5 million to over $15 million. Several other universities described the support provided, including classroom space, campus facilities, and student scholarships, but they did not report its monetary value. Figure 2 shows examples of facilities at the U.S. universities with institutions in China. Three universities also reported receiving nonmaterial support such as guidance and introductions to contacts in the Chinese government. For example, one university said its Chinese partner university provided assistance in obtaining the Chinese government approvals needed to establish the institution. Another university said the provincial government’s education bureau provided advice, introductions, and occasional facilitation support. Finally, two universities said the Chinese national government provided advice and introductions to help establish and maintain their institutions in China. A few universities told us they received funding from private sources in China, such as donors, to operate their institutions in China. For example, one university responding to our questionnaire reported receiving less than $100,000 from private sources in China in academic year 2014- 2015. Another reported that 15 percent of its China institution budget came from private philanthropy and programs for executives but did not specify whether the private sources were U.S. or Chinese. Several universities said they were not aware of the sources of financial aid that their Chinese students may have received. A few universities reported receiving nonmaterial support, such as advice, from Chinese private sources; one university noted that private individuals in China serve on its advisory board, and another said several Chinese companies host students from its institution in China and provide career assistance. Education does not provide funding or guidance to help U.S. universities establish institutions overseas, including in China, but U.S. students may use federal financial aid for their studies in China under some circumstances, according to Education officials.