Abstract This paper provides an analysis of the evolution of Chinese language education policy amid the country’s global transformation. Drawing upon the theory of structural realism in international relations, we argue that China’s language policy changes are driven by the dynamic interactions between a country’s domestic developments and its changing position in the international system. Through a review of policy documents, the study reveals three major shifts in China’s language education policy in the past three decades: from an economic to a political orientation, from an emphasis on cultural input to cultural output, and from a focus on English as the major foreign language to the promotion of a multilingual landscape. These shifts are analyzed as China’s strategic responses to its pursuit of national interests within the changing international environment. The analysis not only contributes to an understanding of policy changes in China, it also makes a contribution to the field of language policy by demonstrating the explanatory power of international relations theory in understanding language policy changes in the context of globalization.