Abstract: The process of the massification of higher education in China is dominated by the government. As a result, oversupply and undersupply of higher education both exist in China. This paper gives an analysis of oversupply and undersupply of higher education based on three aspects of hiberarchy of higher education in China from 2004. Research shows that the proportion of different levels of higher education is still not harmonious in the overall level, especially the seriously squeezed state of the proportion of junior college students. The hierarchy of discipline level is constantly adjusting towards a reasonable direction. The release of Made in China 2025 makes engineering education face more challenges. In this area, the proportion of different levels needs to adjust gradually, inclining to high-level innovative talents and high technology applied talents. These changes of hiberarchy have revealed the problems of oversupply and undersupply of the different levels of higher education in China.