Abstract: Although there is over 20-year-history of research in China, the status quo of straw densification briquetting fuel (SDBF) in China is that its annual production of more than 100000 tons only accounts for 2.5% of the gross output of the world and the biomass consumed by producing it is only 0.01% of the gross biomass output of China. It is concluded according to authors’ research experiences of more than 10 years that four reasons for causing this status are, respectively, high costs of biomass collection, storage and transportation; rapid abrasion of briquetting machine; sedimentation of fly ash on water cooled wall of boiler for SDBF; influence of water content of the raw biomass on briquettes quality. The causes resulted in these problems and corresponding solving methods were discussed based on the analysis of briquetting mechanism and practical cases of SDBF production. Moreover, suggestions on industrialization and development model for biomass fuel briquettes in China were proposed.