This paper adopts an inductive analytical approach to reviewing the major state policies to reform teacher education in China. Based on the perceived impact on teachers and teacher education, 21 policy documents have been selected for this review. Five themes emerge in the analysis, which include: Expansion of teacher education by institutional diversification; structural changes through upgrading, merging and eliminating institutions and school; innovations on modes of teacher preparation, curricula and teaching practicum; certification and examinations; and strengthening teacher supply for the rural schools. The paper also analyses the contextual and systemic factors that affect the formulation and implementation of reform policies in teacher education and critically reflect the effect of these policies on Chinese teacher education.