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The Chinese government recognises that, in the 21st century, globalisation, scientific and technological developments and the appearance of the knowledge economy make a flexible, skilled and qualified labour force a key element in further development. The importance of lifelong learning is recognised and to enable all people to access the education and training they need, one of the programs intended to support educational reform is an experimental program involving a credit system in vocational education schools and institutes in China. The paper describes the credit system, pointing out that the implementation of this system is an important measure intended to produce innovation in teaching and learning methods and systems, to develop a teaching management system that is more open and flexible, and to adapt to the demands of economic and individual development. Sucessful aspects of the credit system include: a move to a more student-oriented system; a reduced dropout rate; improved the use of educational resources; and a contribution to the development of lifelong learning in China.