As the scale and scope of transnational education (TNE) has broadened, and the range of delivery models and partnerships has continued to expand, so too have the challenges. Universities offering courses outside their own country face a growing range of legal, practical and political challenges. The significant disruption during 2020–2021 coming from the global coronavirus pandemic, and it’s effect on the provision of higher education in most countries, has further amplified many of these challenges, raising questions about what the future might hold for TNE, including in China. This article aims to establish the major enablers and challenges for TNE provision. It utilises an investigation into Australian TNE providers immediately prior to the COVID-19 pandemic as a means to analyse these factors. As a major provider of TNE, including in China and other Asian countries, Australia provides a useful example of how TNE partnerships are being facilitated, for better and worse. In particular, the article establishes that tailored and often market-specific collaborations offer the best chance of a successful partnership. The study also provides an important basis for considering how TNE will function as a key component of the ongoing response of the higher education sector to the pandemic.