Along with China’s economic growth, the notable rise of its universities and innovation system has inspired growing interest in how the higher education institutions (HEIs) of the European Union (EU) cooperate with Chinese HEIs. Beginning with a review of China-EU higher education relations, this paper presents a case study of a Sino-Danish collaborative programme in which cooperation and programme quality were limited by both partners’ different aims over time, and their alternate quality assurance systems. We suggest a proper collaborative level and discipline should be developed before the establishment of cooperation by taking relevant policies, merits and disadvantages of both partners, into consideration. This paper also points out that limits in collaboration can be alleviated, if a number of elements can be used effectively, such as China’s significant EU knowledge diaspora. Given this and other listed factors, including favorable policies introduced by the Chinese government, there are substantial prospects for extending China-EU collaborative relations and exchanges.