Recent comparative education policy studies show that even though there seems to be similar patternsand trends in higher education reforms in East Asian societies, the recently initiated higher education reforms have had very diverse agendas. Thus, the considerable convergence of policy rhetoric and general policy objectives may not satisfactorily explain the complicated processes of changes and the dynamic interactions between global, regional and local forces that shape education policy-making in individual countries. This article discusses globalization effects on national policy, with particular reference to how the higher education sector in Taiwan has transformed itself under the global tide of marketization and decentralization. There are a lot of changes similar to both higher education in Taiwan and that of elsewhere, which suggests that Taiwan’s higher education has been affected by the trends of globalization. But before we jump to this conclusion, maybe we should also bear in mind an alternative hypoth- esis that local factors are crucial and determining factors for change. The core of the article is to examine the ways and strategies theTaiwan Government hasadopted to reform its higher education sy stems in response to the changing local socio-economic political context and regional-global environments, with a particular focus on provision, regulation and financing.