Policy experimentation (PE) has been regarded as an integral element in defining China's reform capability. However, few studies have investigated the processes of PE in China's education reforms, as well as the policy conditions required for PE's successful initiation, implementation, and inclusion into the policy process. Through an empirically informed case study featuring university graduate assignment and employment reform, engaged with extensive documentary evidence and semi-structured interviews, the study argues that PE allows a temporary breakthrough from the existing policy constraints to generate contextualized novel policy options, but its large-scale diffusion and inclusion into the policy process have to proceed according to the institutional environment, corresponding to the broader social, economic, and cultural changes.