The rise of the electric bike (E-bike) industry in China serves as a typical case for Disruptive Innovation (DI) in emerging economy. In this paper, we studied the role played by the government in shaping an emerging technology/industry along the years. We found that several government policies played a key role in the success of the industry and its developing trajectory is closely linked to government's decision making. This implies that it is necessary to consider government's impact when we study DI cases from the emerging economies.