Amidst global disruptions—including trade tensions, technological shifts, and the COVID-19 pandemic—the structure of global industrial systems is undergoing significant transformation. Chapter 1 examines how China is responding to these changes by prioritizing scientific and technological innovation. It outlines national strategies aimed at enhancing China’s position within global value chains through independent Research and Development (R&D), institutional improvements, and international cooperation. The chapter also discusses the construction of a robust innovation ecosystem that supports industrial upgrading and economic resilience. Drawing on comparative experiences from countries such as the U.S., Israel, Japan, and Germany, it emphasizes the strategic role of innovation in shaping global competitiveness and future engagement.