The economic transition in China since the late 1970s has led not only to drastic social transformations but also to 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 the knowledge-based economy, the higher education sector has been going through restructuring along the lines of marketization, privatization and decentralization. Responding to the globalization challenges, the Chinese government has opened up the education market by allowing private/"minban" higher education institutions and overseas universities to offer academic programmes in China. This paper sets out in this wider policy context to examine the growing importance of the "privateness" in higher education provision in China, with particular reference to the policy implications for quality assurance, the public-private boundary, and tensions between the state and newly emerging private/"minban" education institutions. (Contains 1 table, 1 figure, and 1 note.)