This article reports the challenges faced by Chinese higher education as it expands in scale. The scale of China's higher education has seen unprecedented expansion in recent years. This article explores the new opportunities and challenges that such expansion brings to China's higher education. The author states that, aside from the many generally analyzed reasons--political, economic, cultural, and historical--for the big expansion in the scale of higher education, there are also some special background reasons; that is, that higher education is seen as a reservoir for postponing employment and as a growth point for developing the economy. Furthermore, the author states that, the burden of higher education on China's inhabitants will be extremely heavy if a large part, or the main portion, of the funds needed for expanding the scale the student enrollment in higher education is to be borne by the students or their families. In view of this fact, besides raising funds for higher education through many different channels, one should formulate effective financial strategies proceeding from the perspective of costs, so as to confront the ever grimmer funds challenge. One important aspect is to improve the standards of administration at institutions of higher learning, including the acquisition of timely and accurate data on the schools' finances and resources and use such data to determine the overall costs, average costs, and peripheral costs of training students, whereby to conduct analyses for balancing income and expenditure. (Contains 4 figures, 2 tables and 2 notes.)