With the recent changes of energy and food processing policies，China embraces the great opportunity of developing fuel ethanol. According to the national plan released by the office of Premier Minister，the production of fuel ethanol will be greatly increased in the next few years. Apart from the feedstock，challenges could be from new plants design，operation efficiency，water and waste water management，education. Chinese fuel industry is still far behind world level，mindsets need to be changed and improved. The author reviews the current status of advanced technologies，advocates the immediate actions needed to be taken on engineering design and education，and finally prospects for the near future developments.
