Biofuels are the current promising alternative to fossil fuels. However, the fluctuating food prices caused by oil price led to critics to biofuels. The paper surveyed biofuels production and grain production and consumption demand, and come to the conclusion that there was a little impact of corn ethanol on international food price, and there was no impact on China’s food prices. China has launched nonfood biofuels development strategy to use marginal lands for growing hard crops, such as sweet sorghum, tuber crops, and switchgrass etc. to produce biofuels without any impact on food security in the future.