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This paper employs Carol Bacchi’s WPR approach for a Foucauldian critical analysis of China’s Learning in Regular Classrooms (LRC) policy. Through the DisCrit lens, the policy is examined at the intersection of disability, state power, Chinese culture, and the educational system. Despite the state’s goal of inclusiveness, entrenched assumptions undermine the LRC’s effectiveness, further marginalizing individuals with disabilities and exacerbating social inequalities. Viewed through Kerckhoff’s “institutional arrangements” framework, students with disabilities are more likely to experience reduced opportunities for further education and career advancement following the nine-year compulsory education compared to their typical peers. Future policies should strengthen institutional support for students with disabilities, embrace diversity and inclusion, and address existing disparities to advance a more equitable society.