Abstract: The operating rules for coalbed methane(CBM) industry in China are systematically studied in this paper,issues in four aspects are analyzed and four points for further improvement are proposed.It is indicated as follows.①Dozens of laws,regulations and administrative documents related to CBM industry have been enacted to ensure the normal functioning of the industry.②issues on four aspects:a.the imperfect law,including Coal Law and Land Low;b.partially imperfect industrial supporting policy and undesirable results;c.partially unsatisfactory administrative management and undesirable results;d.partially inadequate supervision and lacking of regulation.③four points for further improvement:a.revise the Coal Law and support the land use of CBM development;b.revise and reset the industry financial supporting policy,including financial subsides,income tax and value added tax (VAT) for CBM development;c.simplify and improve administrative management for reform of mining rights and administrative approval procedures;d.improve the supervision system for mining rights,gas price,financial subsidy,foreign cooperation and security.