Abstract: The construction of a skill-based society is a crucial strategy for China as it enters a new stage of development, aiming for high-quality growth, fostering the formation of a national skills system, and promoting the development of skilled professionals. The construction of a skill-based society hinges on modern vocational education for support, while also imposing new responsibilities on vocational education in the contemporary era. By concentrating on the establishment of China's skills formation system, it systematically analyzes the challenges and practical issues in building a skill-based society from three perspectives: skills perception, skills valuation, and skills formation. Through in-depth analysis, it explores the challenges that a skill-based society presents to vocational education and corresponding countermeasures. The goal is to achieve breakthroughs in both the breadth and depth of vocational education in aspects such as the construction of a modern vocational education framework, the provision of high-quality talent, and policy safeguards. This will be accomplished by further reforming vocational education to expedite the construction of a skill-based society.