A new circular by Fujian's provincial education department on Tuesday has targeted academic plagiarism by college teachers, amid increasing worries over the practice.
College teachers in Fujian may also be dismissed if they spread misinformation against the country's laws and regulations to mislead students, the circular said.
An increasing number of teachers in universities in China are turning to the Internet or other academics' research to advance their own careers.
Shen Yang, a professor at Wuhan University who released a research paper in 2009, said the country lacks an effective thesis supervision system and the convenience brought by the Internet drives the booming ghostwriting market.
His study shows there were more than 1.1 million full-time teachers in universities and colleges across the country in 2007.
They had to publish more than half a million theses within two years in nearly 1,800 important periodicals to keep their positions.
Other banned practices include teachers abusing their power for personal benefit and teachers acting fraudulently on student enrolment, assessment and exams.
The circular also emphasized that teachers will lose out on promotion opportunities and pay rises if they are irresponsible in students' safety or induce students to participate in any "illegal or superstitious activities".
It said teachers were not allowed to use "physical punishment on students or insult them".
Violators will have any academic award and honor canceled, and will not be able to apply for new research projects for specified periods.
Those who cause serious consequences could be sacked, the circular said.