In China, the IOT market has already been established in the consumer sector, and many Chinese companies have already entered the consumer IOT market. In this paper, the primary data collected in the local interview survey was sorted out using the PEST analysis of the external environmental analysis tool in the marketing strategy. I will introduce the “alliance”, “policy response” and “technology outflow” among the points of entering the market of Japanese companies that emerged based on PEST analysis. Business in China’s IOT market will be a different business model from business in global market. And China’s IOT market is policy driven and needs to pay attention to government trends.