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Preschool enrollment has climbed dramatically in China over the past quarter-century, with private organizations or villages running three in five centers, serving 3 to 6-year-olds independent of the state. This paper finds that non-public centers in Yunnan Province yield few developmental gains for children attending a second year of preschool, unlike peers in state-run centers who experience benefits across cognitive domains, especially in urban areas. We estimate heterogeneous effects for 11,163 children attending preschool for two years, compared to peers age-eligible for just one year, in 305 randomly selected centers. Indicators of preschool quality do not explain sector differences, employing a quasi-experimental design. Implications for East Asian societies and other regions that encourage the growth of non-public preschools, are discussed.