In September 2014, the University of Chicago announced to close its Confucius Institute. The interactions among the Confucius Institute-related stakeholders within the University of Chicago are critical to the operation and survival of the Confucius Institute at the University of Chicago (CIUC). Specifically, low expectations toward the CIUC of relevant CIUC faculty members resulted in insufficient incentives of defending the CIUC. Secondly, inappropriate handling of the media news coverage narrowed the maneuvering space for the University administration in face of the crisis. Therefore, the Confucius Institute should grant equal attention to the administration and the faculty members of the host universities, be sensitive to the change of different stakeholders’ attitudes, and prudently handle overseas news coverage in consideration of the situation of foreign stakeholders.