The Chinese government recently restated its plan to formulate all automotive gasoline with 10 percent ethanol by 2020. China will promote the use of ethanol in 13 regions this year, including Beijing.
Under this plan, the government plans to reduce its massive corn stockpiles, currently calculated at almost 80 MMT. With world 2017/18 ending stocks estimated to be around 193.3 MMT, China is holding 41 percent of the total. Government corn stocks are large enough to allow a start to the program. However, if this is a long-term plan, China will eventually need to import either corn or ethanol to sustain this program, given that the country’s vehicle fleet is estimated to be the largest in the world.
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