AbstractAfter the Cultural Revolution, China faced a lot of problems and challenges. The country was waiting to be reconstructed and developed. To build China into a modern and powerful nation, it’s extremely crucial to increase the development of economy. Education, particularly higher education is seen as the engine of economic growth. Therefore, Deng proposed and implemented the Open Door policy in 1978, which was a historical turning point in China and marked the new beginning of internationalizing China. In the process of internationalization in China, the country sent and encouraged many students and scholars to study abroad in developed countries. However, they didn’t return back as what the Chinese government expected. Thus, “brain drain” in the new era happened in China.This paper aims to explore the policies on the issue of studying abroad in China since 1978, focusing on “brain drain” and “brain gain”. The following questions are discussed in the paper: What are the reasons that triggered brain drain? Why do more and more Chinese tend to return? What kind of policies has the Chinese government to reduce brain drain and increase brain gain? To what extend has the role of Chinese government been changed? What policies have developed countries employed on the issue? Is it brain drain and/or brain gain for China? Through the study, the author hopes to lead the reader to make a better understanding of China’s policies on the issue of studying abroad since 1978 and to shed light on the future study on the issue of ”brain drain” and/or ”brain gain” in China and other countries.