Overseas students are now permitted to study at privately run colleges and research institutes rather than just public universities.
From the beginning of this month the private Shanghai Jianqiao College, Shanghai Shanda College and the Shanghai Academy of Social Sciences started recruiting foreign students, following authorization from the Ministry of Education.
The deal gives foreign students more choice and is expected to cause a rise in Shanghai's student population.
According to local education administration figures, by the end of 2010, the number of foreign students studying in the city will surpass 70,000.
Since 2000, the number of foreign students in Shanghai has increased 30 percent year on year. Last year the city's 24 public-run universities enrolled a record 31,636 overseas students.
Maria Gomez Lomelin, a Mexican student working on her master's degree at Shanghai International Studies University said, "My major is Chinese literature and art and doing the courses in China helps me get a grasp on the language faster."
It also gave her a better understanding of the country, she said.
Shen Baiyao, a professor in charge of enrollment of foreign students at Shanghai Jianqiao College, said it was a win-win deal for everyone.
"We sincerely welcome more foreign students. Communication between foreign and Chinese students will widen their horizons."
Shen said faculty members are contacting foreign universities to set up exchange programs in order to attract more foreign students.
Overseas students are expected to start enrolling at private colleges for spring next year, in February.
Zhong Mindong, from Shanghai Shanda College's student exchange department, said Chinese students will have more opportunity to chat with foreigners and improve their English.
(China Daily September 6, 2007)