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State policies regarding the internationalization of higher education (IHE) in China have undergone significant shifts between 1949-2015. This paper explores how government policy on IHE has evolved and shifted in the context of significant changes in political and economic directions in China in three specific periods. The paper understands education policy as a social and historical process with power and politics embedded. In particular, it reviews the Chinese government policy documents on IHE within their socio-political and socio-economic context. It links IHE to state formation and especially talks about how political ideologies and collective beliefs are fortified in fulfilling international higher education in China and how neoliberal globalization and Confucianism has impacted state policy-making on IHE in China.