This Chinese country analysis report is part of a series on the social entrepreneurship and social innovation ecosystems in Asian countries including China, Japan, South Korea, Singapore, Thailand and the Philippines. The comparative study provides a global analytical framework on characteristics, trends, challenges and lessons learnt for building a supportive social enterprise ecosystem that leads social innovation in the different focus countries. According to the report, China’s social business market is growing and still has a huge potential to grow further. On the demand side, rapid economic growth has brought diverse new social and environmental issues that cannot be tackled solely by the government. On the supply side, China’s social entrepreneurship movement was originally driven by nonprofit organizations that sought financially sustainable means to address social issues. China’s ecosystem for social entrepreneurship and social innovation is expanding especially by an increasing number of players from the business sector. Despite this optimistic outlook, there are some gaps in the ecosystem: the lack of a social enterprise legal framework, the need for human resource support, the need for investor education, and the need to integrate social entrepreneurship into university courses.