required report public distribution date 8 2006 gain number ch6049 china peoples republic of bio fuels an alternative future for agriculture approved by maurice house us embassy prepared kevin latner caleb o kray junyang jiang highlights ethanol production in 2005 was approximately 920 000 metric tons mt with a capacity 1 020 biodiesel totaled between 100 and 200 s current biofuel development policies are to increase nearly 4 million 2010 meet 15 percent transportation energy needs 2020 the ability these objectives depends on competing uses inputs including corn wheat rice sugar cassava sorghum oilseeds outputs sweetener alcohol includes psd changes no trade matrix unscheduled beijing ch1 ch table contents executive summary 3 biofuels background situation 5 key security international recognition vehicle petroleum markets boom higher disposable incomes make private ownership possibility growth catalyst expansion 6 7 encourage quality but limit gets