Since 1985, there have been major fundamental policy changes in the governance and funding of higher education in China - general devolution ( decentralisation) in resource allocation and utilisation, diversification of the funding base, and imposition of fee charges on most higher education students. This thesis examines the impact of the changes on the function of higher education, and on quality, efficiency and effectiveness of the system. This thesis formulated some overall conclusions, extrapolated from current trends in China and in other countries of the world, on the prospects of higher education governance and funding in a global perspective. This country study has identified current patterns in China strikingly similar to those found globally despite great diversity in international experience. Based on this material, the researcher predicts that the future directions of higher education governance and funding will be characterised by counter-balance of government regulation by market forces; greater efforts for cost-efficiency and funding linked to performance; further diversion of government financial priority from higher education to other sectors and greater reliance on private and more diversified funding / Doctor of Philosophy (PhD)