This article is based on original research into institutional governance in private universities. It provides an in-depth qualitative study of how the private university in China has responded in practice to government policies. The analysis focuses on three dimensions: the roles of the university council, the president, and the university constitution. The study adopted two methods of data collection: 31 separate semi-structured interviews with 21 informants as well as extensive documentary analysis. Findings revealed that while external policies provide an impetus for change for each university, how key actors in institutional governance understand these policies has a significant effect on how the policies are implemented. This can result in change that can be viewed as either symbolic alteration or as operational change. This study provides insights from an empirical investigation by way of a case study on private university governance in China, and also a referential perspective on the governance of private universities in general for policy makers, senior managers, and academics.