Abstract:In the knowledge economy age, the competition of a nation is in fact the competition of its innovation system. Knowledge innovation is a key for forming and developing this system. The paper studies relationships between knowledge management and China's competition capacity. It proposes a helix rising theory between knowledge management and national competition structure, and then develops a framework of promoting China's national competition by using cutting-edge knowledge management and data mining techniques. Finally the key problems of promoting the competition capacity are discussed.