March in 1997, the old China Education Commission office published “annual international student scholarship assessment interim measures” and announced to carry out annual China government scholarship assessment system. In 3 years, there were 7,118 scholarship-support students participated in the assessment, and 7,008 of which went through, taking up 78.45%, while 110 students didn’t go through, taking up the rest 1.55%. Among the 110 failed students, 75 ones dropped out of school and returned to their countries, and 35 one applied for continuing study in China by self –funding or reducing part of their tuition. As an important measure in the innovation of China government scholarship management system, the trial of annual assessment system plays an active role in encouraging scholarship-funded students to study hard, timely cleaning out those students who don’t study hard and who ignore school principals and improving China government scholarship benefits. On the whole, the innovation is successful and it met expected effect. In order to strengthen university to legally educate and manage student’s autonomous right, and to make annual assessment more standard, Ministry of Education amended the “annual international student scholarship assessment interim measures” and renamed it as “China government scholarship annual assessment measure”. The annual China government scholarship assessment system was carried out formally.