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Water and carbon exchanges between grassland and the atmosphere are important processes for water balance and carbon balance. Based on eddy covariance observations over a semiarid alpine steppe ecosystem in Bange on the Tibetan Plateau during the growing season from 2014 to 2017, the variations in evapotranspiration (ET), net ecosystem exchange (NEE), and their components and the associated driving factors were analyzed. Linear and nonlinear models were applied to investigate the relationships between fluxes and their controlling factors over different timescales. The results show that the average ET for the growing season ranged from 1.1 to 2.4 mm/d with an average of 2.0 mm/d for the four consecutive years. Drought conditions reduced the surface conductance and hence the Priestley–Taylor coefficient. Mean T/ET was low (0.34) due to low vegetation cover. Plant growth increased the T/ET ratio during the growing season, whereas soil water content (SWC) explained most of the variation of ET and E on daily and monthly scales. The Enhanced Vegetation Index (EVI) was the most important controlling factor for temperature. Transpiration increased with SWC in dry conditions. For the growing season in 2014, 2016, and 2017, Bange was a carbon sink, while it was a carbon source in 2015. The largest CO2 flux was higher and the temperature sensitivity coefficient (Q10) was lower for 2015 than for the other three years. SWC affected these photosynthesis and respiration parameters. The ratio of respiration (Re) to gross primary production (GPP) was the highest during the 2015 growing season. Both on daily and monthly scales, Re was positively and linearly correlated with GPP. The most important controlling factor for the CO2 flux was EVI on daily and monthly scales.