Along with address of the conception of “Smarter Planet”, the development of the Internet of Things (IOT) has attracted highly attention of academia, industry, and news media. There are still many open issues in the definition, internal principles, architectures and system models of IOT. This paper concluded some concepts in the Internet of Things and analyzed the key factors which confined the development of the Internet of Things. Then the author gave the solutions of these issues and explored the future of the Internet of Things in China.