Innovation Changes Chinese EconomyDRIVEN by the innovation-oriented overarching plan， Chinese society is vibrant and exhilarating ?C a profusion of start-ups emerged， fledging industries developed， and the industrial structure as well as quality and efficiency improved. From a holistic view， the economy is steering towards mid- and high-end levels of development. Innovation Propels DevelopmentInnovation is undoubtedly the major force driving the Chinese economy. In the last few years， a batch of high-tech outcomes were unveiled， marking symbolic breakthroughs in key fields such as manned space flights， lunar exploration， quantum communication， Five-hundred-meter Aperture Spherical Radio Telescope （FAST）， manned submersible， and the worlds fastest supercomputer. In 2016， the num- ber of patent applications surpassed 1.33 million， twice of that of 2012， winning China the pole position in the world for six consecutive years.Along with the laxity of Chinas commercial registration institution and related management， innovative outcomes have been widely applied in businesses， which， in return， inspired entrepreneurship among scientists， college graduates， returned overseas personnel， and even migrant workers. In 2017， about 16，500 companies were established every day， which doubled 2012 numbers.In such context， the new economy including new industries， new business， and new modes of business have emerged， which is best represented by the digital economy， network economy， platform economy， and sharing economy. On the other side， the onlineoffline infusion has been accelerated， transborder e-commerce prospered， and the concept of smart homes prevailed. In a recent survey， high-speed trains， mobile payments，bike sharing， and online shopping were selected as Chinas “four new inventions” in modern times.According to the Global Innovation Index 2017， China moved to the 22nd slot， up from the 34th in 2012， leading the middle-income economies. Many international organizations， such as the World Bank， spoke highly of Chinas economic restructure and innovation， commenting that the innovation-powered nation would be the driving force of the world.Co-existence of Different CompaniesIn China， it is not abnormal to see the impact of disruptive innovations， represented by all kinds of “black technologies.” Quite a few companies provided constant， substantial input on innovation， based on their own experience. The innovation is diverse in all forms and sizes ?C big or small， revolutionary or progressive； and the way of turning ideas to reality shows more flexibility. According to the nations overarching plan， strategic emerging industries and high-tech industries serve as the pillar of the innovation-driven development. Meanwhile， Internet Plus and Made in China 2025 were introduced to traditional manufacturers of the light industry， textiles， mines， iron and steel， petrochemicals， and agriculture and services， directing these industries into a more digital， network-driven， smart， and highend development path.By improving the digital infrastructure， China is able to develop next-generation telecommunication products and technologies， new businesses， and new modes， thus promoting the connection of the new and old industries and enhancing coordinated development between innovation and industries.For now， the strategic emerging industries account for more than eight percent of Chinas GDP， playing a leading role in industrial upgrading. In 2016， equipment manufacturing and high-tech manufacturing made up 32.9 percent and 12.4 percent of all industries， up 4.7 percent and three percent respectively from the 2012 levels. The market also saw a surge of new products like industrial robots， new energy autos， SUVs， and smart phones. The prevailing mobile Internet boosted e-commerce， which in 2016 reached RMB 26.1 trillion in business scale， 3.4 times over that of 2012. The socalled “happiness” industries， including tourism， culture， healthcare， and senior care industry， have developed fast， as products quality improved， quantity increased and consumption model more sustainable.Pro-innovation policies extended their presence from high-tech fields to the real economy， especially information， healthcare， energy， and green industries. The service and manufacturing industries have seen a coordinated development， with the service industry achieving rapid growth. For the first time， in 2015， the added value of the service industry accounted for half of the national economy， and the ratio rose to 51.6 percent in 2016. With regard to the contribution to economic growth， the service industry accounted for 44.9 percent in 2012， and surged to 58.2 percent in 2016.Seizing the opportunities generated by the Belt and Road Initiative， China attaches great importance to innovation and international cooperation. On the one hand， it strives to facilitate transnational enterprises and prestigious research institutions to set