The shortage of enrollment in Taiwanese universities has become more serious in recent years. To prevent their closure, Taiwanese universities have committed themselves to recruiting more students from mainland China (lusheng) as a way to increase financial income. However, due to national security reasons, specially designed restricted policies have been imposed on lusheng by Taiwanese government, leading to low rate of satisfaction toward their education experience and later the number of registered lusheng falling below the expected level. The changing Cross-Strait relation is also affecting the outcomes of the policies on lusheng’s recruitment. This article analyzes the reasons for the unsuccessful experience of recruiting lusheng in Taiwanese universities with a two-direction push-and-pull model. The primary data was collected through semi-formal interviews with the same group of 25 degree-seeking lusheng in Taiwan in two time periods (2014 and 2016). We argue that a fundamental reform is necessary for improving the current situation, and at the same time point out several misconceptions held by Taiwanese scholars and policy makers.