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Transnational higher education (TNHE) plays an increasingly important role in the production of space and the negotiation of geopolitical order, yet this dimension remains critically under-examined. This article investigates the geopolitical strategies underpinning China’s rapidly expanding TNHE sector. Drawing on policy documents, administrative data, and institutional cases, we identify three central rationales: first, the strategic diversification of international partnerships to mitigate geopolitical risk and strengthen multilateral alignments, particularly through Belt and Road–related partnerships and engagement with the Association of Southeast Asian Nations; second, a pronounced shift towards STEM disciplines that facilitates technological sovereignty and recalibrates China’s position within the global knowledge economy amid heightened techno-nationalist competition; and third, an increased emphasis on geopolitical subject formation accompanying a discursive and operational shift from ‘Westernising domestic education’ to ‘localising international education’. These findings show that China deploys TNHE not as a passive host within a Western-dominated paradigm, but as an active agent in forging alternative geopolitical and geo-intellectual spaces. The study challenges TNHE scholarship dominated by market-oriented assumptions and contributes to a critical understanding of how the internationalisation of higher education is mobilised for grand strategic ends.