Biodiesel derives itself from renewable resources such as oils and fats. As an alternative fuel, biodiesel is attractive owing to its less exhaust emission, good lubricant performance, fully degradation ability, etc. However, its high cost is an obstacle to the development. This review aims to probe into the possibility of the manufacture of biodiesel in large scale as an alternative fuel and organic commodity chemicals, in which some factors including the feedstock of biodiesel production in China, the processing technology with china´s own independent intellectual property and the development of high added-value derived products from biodiesel are discussed. It is emphasized that the advanced technology conforming with Chinese situation is essential to make this new industry competitive.