This research studies Chinese students’ choice of transnational higher education in the context of the higher education market. Through a case study of the students in the transnational higher education programs of W University, the research finds that Chinese students’ choice of transnational higher education is a complicated decision-making that is influenced by push factors related to domestic higher education and overseas higher education, pull factors related to transnational higher education and student’s characteristics such as economic condition, academic aptitude, and future plans. Compared with domestic higher education and overseas higher education, transnational higher education is a second choice. It is being used by the majority of students as a tool to regain access to high-quality domestic higher education institutions and to gain access to overseas higher education. Currently, there exist information gaps between students and transnational higher education programs, which prevent students from making an informed decision when they choose a particular program.