Biofuel ethanol is a type of renewable bioliquid made from biomass. Major economies such as US，China，the European Union，Brazil，Canada，Australia，along with almost a third of all countries have been blending gasoline with ethanol fuel. Its numerous advantages include：adjustment to the grain market，reduction of carbon dioxide emission，and mitigation of foreign energy dependence. Chinese government has begun gradual implementation of ethanol blended gasoline since the turn of this century and will soon realize its national strategy of state-wide ethanol blended gasoline utility. This article reviews the development history and current ststus of biofuel ethanol industry in selected countries with an emphasis on China：the vital importance of ethanol to its national food security，energy security and environment protection.