BEIJING, Aug. 18 -- China plans to improve the regulations on establishing private schools, according to a draft amendment to the regulation regarding non-government funded education.

The government will encourage the establishment of private schools by providing subsidies according to the number of students enrolled, tax breaks, discounted price for utility services and preferential treatment for land use, the proposed amendment said.

Foreign-funded enterprises and social organizations controlled by foreign entities or individuals are not allowed to establish or control schools providing China's nine-year compulsory education, which includes six years of primary school and three years of junior secondary school, the draft said.

Public schools are not allowed to establish profit-led private schools while establishing non-profit private schools should be approved by authorities.

Non-profit private schools established by public schools cannot use fiscal funding or affect teaching activities of public schools, the draft said.

The draft has been published by the Ministry of Justice for the public to provide opinions until Sept. 10.