This paper contends that the inclusion of meso- and micro-level perspectives has been under exploration in the study of the internationalization of humanities and social sciences, in particular, in a state-mandated system where policy interventions in higher education and knowledge production have typically been aligned with state construction and national development. It argues that institutional and individual responses to state policies on the internationalization of humanities and social sciences should be investigated due to their respective roles in policymaking and implementation. It has, therefore, retrieved recent and historical policy documents during the post-WTO period and collected empirical data from two Chinese universities. A constructivist-interpretivist qualitative approach and a qualitative case study strategy were adopted for this investigation. Based on an in-depth analysis of the empirical data, this paper reveals the gap between the macro-level ambition of achieving outward-oriented diffusion of innovations and the local-level realities, as well as institutional dilemmas and conflicts in facilitating the internationalization.