Private higher education has become increasingly important in China which has the largest numbers of students enrolled in private universities in the world. The Chinese government, in an attempt to regulate the sector, issued legislation in 2016 which required private universities to classify and register themselves as either for-profit or not-for-profit. However, implementation of the policy is slow and the majority of private universities so far have not re-registered their legal status. This study reports on an empirical investigation of the factors that have affected implementation of the policy through interviews with stakeholders involved in Chinese private HE, and an examination of policy documents. It fills a gap in the English language study of the classification management as for-profit or not-for-profit of private universities. As such, it provides insight into practice for policymakers and academics in the field of governance of private universities.