This document discusses social innovation in China. It explores buzzwords around social innovation, questions people have about social innovation and social business, quotations from leaders of NGOs on the nature of innovation. It profiles an example social innovation project called Buy42 for online recycling of beauty products. It also outlines the Shanghai Social Innovation Incubator and innovation awards for non-profits. In concluding, it notes the character of social innovation in China is focused on generating ideas to address social problems, while the ecosystem is still developing, and there is a critical role for the second sector to play between civil society and social innovation.