The economic transition in China since the late 1970s has led to not only drastic social transformations but also rapid advancements in science and technology, as well as the revolution in information and communications technology. In order to enhance the global competence of the Chinese population in coping with the challenges of a knowledge-based economy, the higher education sector has been going through restructuring along the lines of marketization, privatization and decentralization. Responding to the the challenges of globalization, the Chinese government has opened up the education market by allowing overseas universities to offer programmes on the mainland. This article sets out in this wider policy context to examine the current developments of transnational higher education in China, with particular reference to how students in Zhejiang province enrolling in these overseas programmes, especially those offered by Australian providers, evaluate their learning experiences. This article will also discuss the major concerns raised by the respondents in our study regarding the newly emerging transnational higher education programmes, with particular reference to examining how far these new programmes would affect the regulatory framework in Chinese higher education. (Contains 10 figures and 1 note.)