The Returning Entrepreneurship is playing more and more important role in promoting the innovative economy in China.Based on the first-hand interviews and questionnaire in the Zhongguancun area,this paper studied the upda- ted development and challenges of the new business ventures started by overseas returnees.We find that favourable gov- ernmental policies,good market opportunities,abundant outside information resources,supporting rules and laws,and good industrial cluster are the main factors that attracting the returning Chinese entrepreneurs.However,there are still some bottlenecks,including entrepreneurial financing,market exploitation,team building,awareness of the domestic situations and intra-industry cooperation,etc.Some policy implications to build a better ecosystem for entrepreneurship are provided for the future development of Returning Entrepreneurship,especially to improve the platforms for entrepre- neurial financing,information exchanging and human resource development.