Policy transfer and policy experimentation in China: the case of state-sponsored student loans

As part of efforts to mass higher education, China introduced state-sponsored student loans around the turn of the century, a progressive social policy reflecting the country’s move toward increased marketization and decentralization in delivering educational services. The loan scheme, open to low-income students, is a voluntary policy transfer that draws on lessons from abroad. Unexpectedly, it stalled soon after implementation. Subsequent local experimentation brought it back on track. This article uses the Dolowitz and Marsh policy transfer framework to identify and explain the unsuccessful transfer. It also uses Heilmann’s model to examine the local experimentation that brought about institutional change nationwide. The article argues that policy transfer, in conjunction with policy experimentation, provides practical frameworks for capturing the subtleties of China’s hierarchical governance and the different complications experienced throughout the policy process. The article thus contributes to the integration of policy transfer and experimentation as a broader toolbox for policy analysis.