Chinese higher education has experienced dramatic development since the reform and opening-up in 1978 and especially the great expansion in 1999. The entry to WTO brings a fresh dynamic and opportunity to Chinese higher education. Under the new impetus, the pressing demands of cross-border higher education in China are mainly to expand access, raise funds, improve the quality of human resources and exert national soft power. On joining the WTO, China made efforts to integrate itself into the international community though the development and improvement of legislation, policies, and regulations in higher education that have achieved positive outcomes. However, some current challenges and barriers, including capacity building, administration and management, quality assurance, and qualification recognition still block the further development and need to be removed. The promotion of cross-border higher education in the future not only requires more strategic planning and policy support from central and local governments and higher education institutions, but also depends on a series of institutional transitions and deep reforms to meet the challenges and grasp the opportunities brought by WTO/GATS.