Education in China has a rich history, and its education system is the largest in the world. China has a huge educational budget that accounts for about 4% of the total Gross Domestic Product (Zhang, 2006). The Chinese government enacted an education law in 1986 making all Chinese children undergo compulsory education for nine years. From this legislation, the country has acquired an estimated 99.7% universal nine-year basic education for the total population (Zhang, 2006). China has a state-run education system for public education that is overseen by the Ministry of Education. The government funds the basic education. The research paper will address social, economic, geopolitical and world view factors that influence the state-run education system in China. It will further carry out an analysis of the modern educational practices of the system including how it runs.