Abstract: By introducing the macro policy of making great effort to develop bioenergy industry in China，the article analyzes the current biodiesel development in China in the aspects of raw material supply and technical path alternative. In addition，the article discusses the main issues in the biodiesel development in China from the perspectives of raw material，policy support，production technology and capital investment. Finally，it gives some recommendations to promote the development of Chinese biodiesel industry，such as industry planning，market standard，technology system，finance and tax support，etc. and to pay attention to environment impact and making full use of Clean Development Mechanism (CDM) and Voluntary Carbon Market (VCM) to provide references for decision making.