Following the West, China exhibits a proactive attitude and conservative actions to developing entrepreneurial universities. This article deconstructs such a paradoxical approach by analysing the scholarly literature, policy discourses, and empirical data and their various perceptions of entrepreneurial universities in the Greater Bay Area (GBA). We conducted 71 interviews in four case universities to obtain empirical data for triangulation with the literature and policies. Our main research findings include the following: (1) there is a desire to introduce the concept of entrepreneurial universities from the West, along with their characteristics and aims; (2) China's policy discourse of excellence and pragmatism affects entrepreneurship education and technology transfer; and (3) an emerging identity of entrepreneurial universities is constrained by attitudes and barriers at the institutional level. China's perceptions and practices reflect a lack of sustainability of and fragmented approach to developing entrepreneurial universities, with strong implications for establishing entrepreneurial universities elsewhere.