Abstract: Development and utilization of coal-bed methane(CBM) is a concentration of energy use、environmental protection、mine safety in one of the emerging field. According to the 2008 evaluation of CBM resources, China possesses rich CBM resources and its quantity is roughly equal to the amount of conventional natural gas resources. This paper summarizes China CBM resources development and utilization in recent years as well as surface exploration and underground extraction status. And then analyzes the CBM reservoir characteristics in China, introduced the CBM industry policy in effect. The article concludes the problems and obstacles in the realization of CBM industrialization, and proposes countermeasures.