There are several common trends and challenges in the higher education (HE) system around the world, like expansion and diversification of HE, fiscal pressure and orientation to markets, demand for greater accountability and great quality and efficiency (e.g. The financing and management of higher education: a status report on worldwide reforms, 1998; Internationalisation of higher education and global mobility 43-58, 2014; Global policy and policy-making in education, 2014; Higher Education Policy 21:5-27, 2008). These trends and changes have reshaped university governance as well. Public universities are the main institutions to carry out HE in Australia and China. The engagement between Australia and China in HE sector has become closer and closer in recent years. To conduct better and further cooperation and collaboration between Australian and Chinese universities, it is critical to understand and acknowledge the differences in two nations' university governance. Moreover, by conducting this comparative study of two nations, it also helps us to figure out the changes in university governance over times under the global trends and the interactions between global and local factors. This comparative study focuses on the university level and attempts to identify the differences of university governance in Australian and Chinese public universities in three dimensions, state-university relation, university internal governance and university finance. This paper sketches the university governance in Australia and China and finds that the relationship between government and university is looser in Australia than that in China and Australian universities enjoy more autonomy and power than Chinese universities; as to university internal governance, Australian universities use a more business-oriented management mechanism; funding associated with full-fee paying international students has become very important for Australian HE while Chinese government funding has been decreasing as well but funds from international students play a minimal financial role.