One of the goals of China's 'Double First-class' initiative is to boost the top-notch disciplines in those next-to-top universities and allow their differentiated paths towards development. This study investigates Chinese universities' policy interpretations and strategic responses to this national initiative through a social network analysis of 86 strategic plans of 'first-class discipline universities' and an empirically informed case study. Despite the possibility of achieving greater higher education diversity through the initiative, their strategic plans reveal a highly identical structure with homogenous aims and strategies. As further shown in the case study, the university tends to interpret the national policy as an opportunity to acquire more financial, identity and policy resources, in order to build a comprehensive first-class university, which might lead to homogeneity rather than diversity. The study reveals the intrinsic complexities of the policy and the discrepancies in understanding among stakeholders in the policy implementation process, and therefore uses it as a lens to understand institutional behaviours through a resource dependency framework.