This paper discusses the development of the Internet of Things in China from different points of view，such as macroeconomic environment，industrial policy，technology，the industrial chain. Technical progress on the Internet of Things plays an important role on enhancing China’s innovation ability，self-development capability and international competitiveness，changing the way of production and social activity，upgrading the industrial structure，and achieving economic sustainable development. However，technology development，business models，industry linkage，the legal environment will be prerequisites for the Internet of Things to promote economic growth.