I'm with Biden on this one too. I hope the idea is not to use this technology in the US, and even in China it's really not a good solution. Joseph Romm's take on coal to liquid fuel:
First, the process is incredibly expensive. You need to spend over $6 billion just to build one plant, which would produce 80,000 barrels a day - hardly a cost-effective solution when the U.S. consumes more than 21 million barrels a day.
Second, coal-to-diesel requires lots of water, about five gallons of water for every gallon of diesel fuel - not a particularly good long-term strategy in an area that is dealing with drought and water shortages [referring to Montana, which was proposing to use the technology, but China is facing major droughts as well], which will only increase with global warming.
Third, the total carbon dioxide emissions from coal-to-diesel are about double that of conventional diesel. Half the emissions are from the plant, and while you can in theory capture and store that carbon underground, it is expensive. Also, permanent leak-free solutions are not yet proven. And even if the carbon is captured at the plant, you are still left with diesel fuel that is burned in a vehicle and emitted out the tailpipe. We need to reduce our carbon emissions, and coal-to-diesel will increase them. It is not a good use for billions and billions of dollars.