The　upcoming　21st　century　will　be　an　age　characterized　by　Knowledge　Economy＇s　dominating　the　world　economy.　Undoubtedly,　the　Knowledge　Economy　is　to　be　the　center　of　world　competition.　This　will　be　posing　China　both　opportunities　and　challenges.　Therefore,　it＇s　of　vital　importance　for　China　to　research　into　the　following　questions　carefully,　that　is,　the　acquirement　and　accumulation　of　knowledge,　the　study　and　development　of　technology,　the　establishment　of　innovating　policy　and　the　comprehensive　readjustment　of　strategies　for　economic　development,　then　put　them　into　practice.