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Academic freedom has always been viewed as problematic in China. China has stated that academic freedom is important, but a culture of silence exists such that critical comments about university governance, much less about society, are frequently absent. Recent academic integrity crises on university campuses, as well as increasing governmental intervention in the day to day lives of academic staff, have once again brought this issue to the fore. A scrutiny into the Chinese scenario sheds light on an integral paradox. On one hand, Chinese scholars long for discretion and independence over their academic affairs, which would in turn benefit Chinese universities’ campaign for world-class standing. On the other hand, some aspects of the Confucian value system place constraints on scholarly activities of Chinese scholars. In the Confucian tradition, knowledge has been less a matter of understanding the world than of changing it, and scholars were expected to cultivate the self, manage the family, govern the country, and bring peace to the world (Marginson, 2011; Yang, 2011). Scholars have traditionally sought a unity of knowledge and action through their roles as “action intellectuals” (Mattson, 2002) often within the political regime, rather than as “public intellectuals” (Gattone, 2006). Like a double-edged sword, this legacy could render Chinese scholars particularly vulnerable in the face of political power and social changes. This paper explores the pressing need to break this paradox, as it ushers in a big challenge for both Chinese academia and government.