The large-scale utilization of inefficient biofuel stoves for cooking and heating in the rural areas of China can cause ecological and environmental problems; thus, in 1982, the Chinese government encouraged the diffusion of improved biomass stoves. From 1982 to 1994, these improved biomass stoves have been used by 144 million households or the equivalent of 90% of all improved stoves installed globally; 62% of the Chinese market has been penetrated. This paper presents the fundamental features of China's diffusion programme of improved biomass stoves, analyses of the future domestic market, and defines some of the lessons learned from the diffusion programme which may be applicable in other emerging nations.