Abstract: The paper analyses the change of compulsory education policies since 1977 and practical issues of current Chinese education, disparities among primary schools and secondary schools, the trend of education for examination, heavy burden of pupils, school choice and miscellaneous fees, and rural education, etc. Three dilemmas, education for examination and all round education, the principles of compulsory education and charging fees, and education for the minority and education for all, are discussed. It is argued that dealing with the three dilemmas would be critical to the development of compulsory education in the new century.