The article is an introduction and re view on China and The Knowledge Economy:Seizing the 21st Century by Carl Dahlman et al.It analyzes the present conditions of China and the c hallenges China is facing,and point s out that the main task for China' s modernization in 21st Century is to speed up the construction of knowled ge society.The article also provides s ome policy suggestions on how to set u p knowledge economy and society.