While much of the Western world focuses on aspects of China that appear to threaten other nations, we should not ignore the lessons that can be found in China’s remarkable evolution as a marketplace innovator. The first key fundamental lesson to take from China’s digital innovators is the benefits of fully embracing user-driven innovation, starting with unmet customer needs, rather than transformational technology embodied in what you are sure will be a killer product. The second major lesson that Chinese digital innovators can teach us is to go beyond digital functionality and offer users an all-embracing digital lifestyle. While Google and Facebook derive most of their revenues from online advertising, Tencent and Alibaba’s online advertising accounts for a fraction of their revenues, because they follow a different business model, which constitutes the third fundamental lesson that the West can learn from China’s digital innovators. While Western companies fret about growing user bases to grow advertising, most Chinese digital innovators focus on generating profits by selling an ever-increasing portfolio of products and services designed to satisfy unmet customer needs or contribute to a more complete digital lifestyle.