The compulsory education law guarantees relatively equal rights for primary and middle school children in China to receive education yet retains the key high school system that undermines educational equality. This paper investigates the benefits and challenges of the system considering Chinese circumstance. The analysis shows the current efforts that have been made to reduce the impact of key schools have not achieved satisfactory effects. Finally, this paper puts ward some methods that require long‐term efforts, mainly including the central government should strengthen the supervision of education investment; change the way to measure the quality of public schools; change the public attitude towards education and share educational resources as possible.