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A theoretical model of positioned, positioning, and repositioning is used to conceptualize the evolving process of the internationalization of Chinese higher education and answer the following three questions: (a) How have the quantitative trends of Chinese students studying abroad and international students studying in China changed over the past 30 years? (b) What are the differences between Chinese students studying abroad and international students studying in China in recent years, in terms of the host and sending countries, the level of study, and the fields of study, and what do the differences mean when compared to those in other countries? (c) What are the challenges, opportunities, and strategies in the years to come? To answer the first question, a compilation of descriptive quantitative data is used from numerous large national and international data sources, which reports a long-term upward trend (with some fluctuations) of inbound international students in China and outbound Chinese international students around the world over the past 30 years. To answer the second question, using general international mobile student profiles for context, data were compared of inbound international students in China and the United States in terms of both level of study and field of study. These revealed imbalanced patterns: Chinese outbound students are more likely to be in certain fields (e.g., STEM, business) and at graduate levels, but international students in China are more likely to be undergraduate students and non-degreed students in the humanities and language studies. Based on the data for the first two questions, the issues are synthesized in order to present the opportunities and challenges regarding the continuation of China’s internationalization of its higher education, especially with respect to inbound international students. In terms of issues and opportunities, economic and other impacts (such as political, financial, and pandemic related) are highlighted and call China’s attention to maintaining and expanding the strengths of its higher education system while considering competition from neighboring countries. Six major challenges are identified in this area, and suggestions are provided.