The comparably low education level of Chinese skilled workers and managers influences to a certain degree the successful or unsuccessful realization of economic reforms in the PRC. This is also the case as regards foreign companies investing in the Chinese market. Insufficiently trained Chinese workers and managers means a costly staffing policy with long assignments for expatriates from Europe or the US. These cost factors have an impact on investment decisions and further activities of foreign companies in the PRC. The article analyses the Chinese educational system. Which possibilities are available for Chinese skilled workers and managers? Has the structure of the present educational system to be changed in order to solve current problems? This investigation is part of a larger project on intercultural human resource management at the I.PA. Institute for Personnel Management and Working Science of the University of the Armed Forces, Hamburg.