Since the 1980s, the entire society in mainland China has undergone a rapid and intertwined transformation in thinking, behavior, and institutions. There is no sign that this transition is slowing down. During the process, public higher education institutions were dragged into rule of law at the end of the twentieth century. This indicates that the system will be substantially reconstructed in the near future. However, regardless of how the system is reconfigured, higher education institutions are different from administrative agencies, private enterprises, and other quasi-government organizations that do not provide any public service, despite the fact that they enjoy more autonomy and are independent of government control. To this end, this article focuses on their relations with the government and their students. Theoretical legal issues along this line are also discussed in this article. (Contains 51 notes.) [Translated by Huiping Iler.]