As the biggest agricultural country, China has an abundant rice straw energy resource. The characteristics of typical china rice straws are presented as high moisture contents, high volatile contents, high ash contents and low bulk density. At present, rice straw is mainly used as fuel, feedstuff, fertilizer and industrial raw material. With improved living conditions in rural areas, farmers tend to rely more on commercial fuel, which leads to even more open field burning of rice straw, and brings air pollutions and potential energy waste as well. The Chinese government is studying relevant policies on acceleration of comprehensive utilization of rice straw with the goal of utilization rate exceeding 80% in 2015. In this paper, focus is on the combustion of rice straw to extract energy, and related challenges face to china is put forward in this paper also