Since the introduction of the reform and opening policy in the late1970s. Mainland China has experienced tremendous social andeconomicalchanges . The "sleepy dragon" is finally wakening up. As theChinese economy now enjoys unprecedented raipd progress, how is theeducational system abjusting to a "socialist market economine issues andprospects concerning education in today's transitional China. Specifically,this paper discusses recent educational development in China and itshistorical, social, political, economical, and cultural contexts and implications .