Abstract: This paper adopts the theory of manpower capital for the discussion of the development of China' s higher education andits construction of modernization, and puts out that the nature of the higher education production lies in the process of manpowercapital As for the confronting problems in this field, this present author argues that the first step for doing this well is to decide thedominant position of the higher education in it, and then form a perfect cost- parttaking theory of the higher education.