China’s education resource investment is substantially inadequate, and GDP share not only lag far behind the developed countries, even less than most developing countries. For the deficiency of education resource investment, the only way is to exploit other sources of funds. In such a context, private education funds invested in education industry is the main way to solve the current education jam. However, public schools have the governmental appropriate fund; private schools do not have it. So some person say that public and private schools are not equal competition, private schools is in the disadvantage situation. National legislation seems support private schools more, but the tendency that ”macro sure, while micro negative” are more and more serious; the inequality between public and private schools through legislation and policy are more and more serious, peradventure the predominance and characteristic of private education contrarily are weaken or desalted gradually. A lot of scholars in Chinese education are attending and studying the constraining factors to the development of the Chinese private education.