The inteational agenda on business and human rights has entered a new era when the United Nations Guiding Prin-ciples on Business and Human Rights was endorsed in 2011. Mean-while, as China is growing to become one of the biggest economies in the world, Chinese businesses are exerting greater impacts on human rights in and outside China. The "Pillar II" policy shift of the Chinese govement regarding human rights refers to the translation of human rights from norms of public law to value principles for the private sec-tor including businesses, and such a policy shift has been both a result of Chinese businesses dealing with "imported human rights challeng-es" in China, and one of the reasons for Chinese businesses tackling"exported human rights challenges" in overseas investment and trade. Through a series of policy changes, the Chinese govement has trans-formed inteational human rights principles and norms into a value system and code of conduct meant for Chinese businesses to respect and observe, which can greatly enhance the awareness and capacity of Chinese businesses in fulfilling the irresponsibility to respect human rights in and outside China. On the other hand, the challenges and op-portunities from different dimensions are faced by the Chinese gove-ment and businesses in business and human rights. Therefore besides effectively fulfilling its duty to protect human rights, the Chinese gov-ement needs to optimize and strengthen its "Pillar II" policies, so as to push and support Chinese businesses in knowing and showing their responsibility to respect human rights at both perception and practice levels.