China has undergone unprecedented changes since the Reform and Opening-up policy in 1978. Policy experimentation (PE) has been key in generating and catalysing reforms in the process. This study proposes a conceptual framework to describe the different pathways of PE-enabled reforms. Comparing two empirically informed case studies, this study demonstrates the functions of this policy tool plays within China's higher education policy-making and development: generative, rhetorical and regulatory. The paper argues that PE can be a genuinely productive mechanism for producing, identifying and negotiating new policy options while allowing the government to supervise and regulate institutional reform behaviours. However, under certain conditions, it assumes more of a symbolic role allowing the government to acquire or consolidate reform legitimacy without engaging substantial innovation. By highlighting those key roles of PE, this paper provides a distinctive perspective for understanding the policy-making and reform process in China's higher education development.