In the digital age, it is necessary for higher education teachers to improve their digital competence to face the challenges of the advancement of technology. Because there are few studies on the digital competence of higher education teachers in the context of Asia, the aim of this study was to describe Chinese higher education teachers’ self-perceptions of digital competence and investigate the effects of self-efficacy and facilitating conditions and how they predict teachers’ digital competence. For this purpose, a quantitative methodology was used. A final sample of 525 in-service higher education teachers from China completed the questionnaire. The data were analyzed using descriptive analysis, inferential analysis, and latent variable path analysis. The results indicate, first, that teachers’ general perception of digital competence was at a high level, and of the seven competence areas, values, ethics, and security, digital resources, and continuing professional development areas ranked among the top four, respectively, based on their means. Significant differences were observed in the digital competence of teachers with regard to different levels of education, disciplines, and institutional categories. Second, according to the results of structural equation modeling, facilitating conditions were positively and significantly correlated with teachers’ self-efficacy and digital competence. In addition, self-efficacy exerted a significantly positive impact on teachers’ digital competence. Finally, self-efficacy was found to mediate the relationship between facilitating conditions and teachers’ digital competence. Implications are suggested for developing teachers’ digital competence according to the findings of this study.