Internet of Things (IoT), which will create a huge network of billions or trillions of “Things” communicating with one another, are facing many technical and application challenges. This paper introduces the status of IoT development in China, including policies, R&D plans, applications, and standardization. With China's perspective, this paper depicts such challenges on technologies, applications, and standardization, and also proposes an open and general IoT architecture consisting of three platforms to meet the architecture challenge. Finally, this paper discusses the opportunity and prospect of IoT.