Fuelled by forces of globalisation, China has gradually shifted from a centrally planned economy to the "socialist market economy". This study examines changes in Chinese education under globalisation and market economy, focusing on the teaching and living conditions of teachers. The study reveals that the profound transformation of social and economic life has resulted in significant changes to education in China, as manifested in curriculum reform, increased disparity between rural and urban education, marginalisation of minority education and lack of accessible and affordable education for the children of migrant workers. The recent changes have also had tremendous impact on teachers in terms of their workload, payment, wellbeing, social status and teaching and living conditions. The study contextualises the concept of globalisation by examining its impact on China through marketisation and privatisation. Its analysis demonstrates a withdrawal of the state from provision and financing of public education. It also reveals a number of social injustices and inequities whose reduction and elimination require the Chinese government to take immediate and active measures.