E-business is to do commercial activities taking advantage of the advanced information network and computer technology. In China e-business has advanced in a certain degree not only in basic facilities and infrastructure, e-business regulations, and general economic laws, but also in theoretical researches and operation. However, e-business also gives a challenge to government and enterprises. Chinese government should create a social environment for the development of e-business that is suitable to our national condition, strengthen the legal environment offering fair competition environment and good service conditions, enhance the theoretical researches of e-business, cultivate professional intellects and provide favorable micro-environment and macro-environment for its development. As for enterprises, they should strengthen the informational construction, enhance the exploration and utilization of their information resources, take supplying chain management, reconstruct their business process, recommend and cultivate e-business intellects, and develop e-business operation. By the joint efforts of Chinese government and enterprises, e-business will have beautiful prospects in China.