This chapter discusses the current status of innovation and entrepreneurship in China, especially in the TMT (technology, media, and telecommunications) sector, and the journey of Chinese innovation going abroad. Although China was until recently perceived as the land of counterfeiting, particularly in the software and telecommunications sectors, over the last decade there has a dramatic increase of Chinese success stories related to innovation. China has made significant technological progress and Chinese enterprises have invested heavily in technological companies in Europe and in the United States. This chapter explores the reasons for this shift towards innovation and evaluates the benefits that Chinese innovation may bring to the world. The authors review three historical periods in China with different approaches to innovation and then discuss five examples of Chinese companies in the TMT sector which are showing the world China’s powerful new role in innovation and entrepreneurship. The chapter discusses the phenomenon of new startups and the many “unicorn” enterprises which are now competing both with each other and with other countries. The chapter concludes with the authors’ insights on where China is going with this shift back to innovation, and present their view on the potential impact that this may bring to the world in the next couple of decades.