The Amendment to the Non-state Education Promotion Law of People’s Republic of China established a major framework for school management policies，which had greatly changed the policy environment for private education in China. The amendment aimed to strengthen the organization of the CCP in private schools，to establish a legal framework of managing schools by classification（for-profit or non-profit），to optimize private schools’ governance structure，to improve social security benefits for private school teachers，and to clarify policies for current private schools’ transformation. It brought systematic changes in terms of clarifying private schools’ identities and property rights，relaxing restrictions of establishing for-profit private schools，and easing price regulation for private schools. Under the framework of “managing by school classification”，the private education industry would be greatly impacted. It took innovations and prudence to adjust to the new policies；regardless，striving to improve education quality would always help private schools to cope with any external changes.