While China has a long history of private institutions of higher learning, they disappeared almost entirely after the founding of the People's Republic of China in 1949 and did not re-emerge until the 1980s. Their reappearance is one of the ramifications of economic marketisation and privatisation in China. But private higher education institutions are now facing new challenges and competition in the education system. Approximately 500 of them were shut down between 2000 and 2009 for financial, legal or other reasons. Looking through the theoretical lens of organisational ecology--a sociological theory that applies ecological principles to organisational studies--this paper traces how the social and economic environment induced the re-emergence of private universities in China and how it has had an impact on their non-linear pattern of development. Using a number of relevant theory fragments from the overarching framework of organisational ecology as tools, the author then explores possible strategies for turning around low-performing private universities in China.