In this paper, the policy text of entrepreneurship education in Chinese colleges and universities from 1998 to 2019 is sorted out, and the grounded theory is adopted to analyze the content of the text. The result shows that China has established a relatively complete policy system after undergoing over two decades of development. Four types of policies have been formed: capacity-building policies, entrepreneurial incubation policies, faculty incentive policies and environment optimization policies, which have played a great part in promoting the development of entrepreneurship education in Chinese colleges and universities. To better serve China’s economic and social needs, the government should further leverage the policy benefits, and guide the formation of a community of shared interests of entrepreneurship education in colleges and universities in a wider range of fields through policies, so as to revitalize the existing resources of entrepreneurship education, and encourage teachers to carry out entrepreneurship education activities continuously and steadily.