The centrality of technological innovation in China’s economic development model, and the alignment of innovation and industrial policy have resulted in a multiplier effect of its innovation policies, leading to a steep ascent on the value chain. This rise on the value chain both results from and reinforces shifts in the global dynamics of innovation. The approach has had large-scale results in terms of financial benefit, infrastructural development, expanding consumer markets, and increasing quality and quantity of the human resources R&D pool. China’s rapid catch-up in areas such as green technology and its endeavors to appropriate core technologies in sensitive military domains such as space, have made technology an important pawn in the power play between the West and China. This vision paper examines how China has developed its innovation policy and strategically integrated it with other policies to strengthen its overall economic and political position. The paper provides an overview of the strategic policies adopted by China both in the innovation realm and in related policy fields, as well as the implications they have on European innovation abilities.