With the rapid development of economic globalization, the booming of knowledge-driven economies, the quick paced construction of the information highway, the inclusion of higher education into GATS(General Agreement on Trade in Services) by WTO, and the ever-increasing number of internationally cultural and educational activities and international students, the internationalization in higher education has become an inevitable trend in China as well as in the rest of the world. Like a coin has two sides, while giving huge opportunities to Chinese higher education, this trend has brought Chinese Higher education formidable challenges. On the one hand, the modernization, market expansion, institutional reform and innovation of Chinese higher education are provided with golden opportunities to strive for the better on the other hand,challenges are presented in every aspect of the higher education system,from structure, operation, resources, to curricula, teacher training and research. However, Chinese higher education, like always, will not abandon opportunities because of risks and challenges. Since the Open-door policy, China’s political and economic reform has developed from learning and introducing advanced technology from developed countries to actively participating in international co-operations and competitions, not only in political and economic realms, but also in culture and education. Our entry into WTO and the successful hosting of the Olympic Games are just two small cases of proof. We embrace opportunities and welcome challenges. But in the process of internalization, Chinese higher education should take the education for international understanding (EIU) into the scheme, to ensure its final success.