Current research of knowledge management (KM) is mostly based on experience in developed countries that are already becoming knowledge economies [16]. In general, ICT (information and communication technologies) is playing an important part of KM in these countries. Applications of their KM models and frameworks might not yield expected results in developing countries. It is necessary to help organisations in developing countries to understand the issues of KM in their local context. Towards this goal, this paper explores current KM practice in China through a case study of a recently created Chinese mobile phone company (referred to as Lotus). The researchers present a model demonstrating how ICT can promote effective KM based on the Lotus case findings. However, this model is more applicable in the wider developing countries context than just China.