The "211 Project" is the extension and enlargement of an old education task in Mainland China, developing the so-called "key schools" of higher education. Subsequently, there will be a continued neglect of the development of other levels of education and the educational system as a whole. Therefore, this article argues that only if the PRC is capable of distributing an appropriate and sustained educational budget to the development of higher education in general, will the "211 Project" assist higher education in mainland China to reach a higher level of prosperity and development.