labor - China restricts college enrollments

When I saw the news that the State Council is going to restrain the enrollment of new students in an Indian paper, I thought they would have it plainly wrong. But here, in the China Daily, I now see the same item.
I'm not sure whether this is a smart move.
At the end of the 1990s China's universities initially doubled the intake of students, without investing more in teachers, buildings and other resources. In terms of numbers that did have its effect on the numbers. Last year the total number of students was even five million, while in 1998 the number was slightly over one million.
That has been bad for the overall quality of the education and large numbers of graduates now end up getting no jobs, despite their degrees. Now the traditional Chinese eagerness to get educated has to be brought under control again, the China Daily noted.

China will face serious difficulties during the next two quarters with 60 percent of new graduates facing unemployment, according to a report published by the National Development and Reform Commission.