Because of university enrollment expansion,the number of Chinese colleges and universities is growing quickly,which has made an important contribution to the rapid development of economy and education. However,after 20 years of development,the policy environment has already changed,and the policy impact needs to be re-examined. Through data and case analysis,this paper demonstrates the decline in quality,the crisis of student resources,the oversupply and debt risk of colleges and universities,which require China to establish a withdrawal system of colleges and universities. Teachers' unemployment,higher vocational education enrollment expansion,delegate power and optimize service policies,and human capital accumulation should not be concern of the withdrawal of colleges and universities. It has social capacity and feasibility. We summarize the existing legal norms and operational procedures for the withdrawal of colleges and universities from the seven dimensions of proposing units,approving units,termination reasons,student placement,property processing,post-terminating matters,and withdrawal process. On this basis,we explore the effective withdrawal path from early warning mechanism,withdrawal criteria,withdrawal mode and after-care mechanism.