The relationship between the state and the university is predominantly shaped at a national level which tends to reflect the specific traditions and circumstances of individual countries. In China the Communist Party has played a crucial role in university governance making it different from any other country. However the role of the Chinese Communist Party (CCP) in universities, particularly in private universities, has rarely been discussed in English literature. This paper examines how the University Communist Committee of the Party (UCCP) is set up and works within private universities, and the various patterns of institutional governance that can emerge. It draws extensively on documents of the CCP and interviews with 32 senior managers on 44 separate occasions. The study shows that while allowing private entrepreneurs considerable freedom to invest in higher education, the CCP still has control over the private universities in their socialist development. This is partly achieved through the requirement that every private university must have a UCCP to oversee the implementation of CCP policies in the university.