Baijiu literally translates to "white liquor". It is distilled from grain alcohol making it very potent - 40-60% alcohol by volume. Baijiu is usually distilled from sorghum and has a distinctive smell and taste - if you can get past the fire that consumes your mouth and throat after swallowing. People who enjoy baijiu refer to the "fragrance" of the stuff. It is served in mini-wine glasses and is usually thrown back, not sipped.
Ask any business person who has been at a Chinese banquet and she or he will probably have a story or two to tell about baijiu. There are various brands and types but famous varieties include: