China depends heavily on coal to meet its electricity and economic development needs for a long time and became the biggest greenhouse gases emission country in the world. The appearance of biomass energy power generation has been easing the tension of domestic energy and environmental issues, which is significant. Major biomass resources in China include waste from agriculture, forestry, industries, animal manure and sewage, and municipal solid waste. While the largest contributing sources are estimated to be residues from annual crop production like wheat straw, much of the straw and stalk are presently used for cooking and heating in rural households at low efficiencies. Therefore, agricultural residues, forestry residues, and garden waste were found to be the most cited resources with big potential for energy production in China. This paper discusses the size of the biomass resource base in China, the current biomass power generation indusrty and bioenergy policy in China.