During the past twenty years, higher education institutions in China have gained enormous rights due to both the streamlining of administration and the decentralization of the government. Their legal status has hence changed dramatically. However, the expansion of their rights has also brought about the possibility of higher education institutions profiting by pursuing development. The influence of the market has begun to permeate higher education institutions, and this change has shown some characteristics of induced institutional changes. Accordingly, higher education institutions should be regulated from the perspective of public law, so as to ensure their public nature.