Knowledge sharing is considered as a main driver of successful open innovation. By probing into the practice and development of China’s knowledge sharing system, the paper has focused on the practical evidence from the institutional and organizational perspectives. At the institutional level, the paper put in evidence the government regulation to construct a system of specific Chinese knowledge sharing mode between firms, universities, research institution and market. At the organizational perspective, the article analyses the organization forms for the knowledge sharing system at the industry level as well the case of Huawei as a typical High-tech enterprise in China. The main contribution of the article is to illustrate the Chinese experience in the organization for the knowledge sharing system in order to implement the open innovation model.