China is facing a number of energy related challenges including a shortage of electricity supply, depletion of fossil fuels and environmental pollution. These challenges make it important to develop renewable energy resources. As per other renewable energy industries, the biomass power industry is facing a series of opportunities and challenges. Utilizing Michael Porter's Five Forces Model theory for analyzing the competitive environment and the competitive situation of an industry, this paper establishes a Five Forces Model for assessing the competitiveness of China's biomass power industry. Inputs for this model include semi-structured interviews with biomass power generation enterprises and a critical analysis of the national policy framework along with relevant literature and official statistics. Five major stakeholders of China's biomass power industry, namely competitors, suppliers, buyers, potential competitors, and substitutes are assessed to determine their influence on the biomass power generation industry. This assessment highlighted the current status, existing issues and future prospects of the biomass power industry. Similarly, it provides assistance to develop procurement strategies for the sustainable development of the industry.