China's pursuit of innovation-driven development echoes historical examples like the US Office of Scientific Research and Development during World War II. China's approach evolved from nationwide mobilization to market-oriented strategies, highlighted by the 2006 "National Medium- and Long-Term Science and Technology Development Plan." While centralized resources and collaboration have been successful, global changes in innovation systems pose challenges. China's government is reassessing and establishing a new nationwide system for key core technological challenges. Challenges include balancing the market and centralized approaches, defining the system's boundaries, and organizing diverse entities for collaborative efforts. The government should prioritize market-driven resource allocation, limited nationwide application, and effective coordination across entities, fostering a flexible, market-oriented system and collaborative innovation ecosystem for key technological challenges.