Abstract: This paper summarizes potentiality and characteristic of China's CBM resources and CBM prospecting,development status.China's CBM industry began in the mid 1980's and made breakthrough in gas rate of CBM single well in the 1990's.International cooperation in CBM development has been carried out since the founding of China United Coalbed Methance Corporation Ltd.(CUCBM) and future strategy for China's CBM industry has been pointed out.Laws and regulations regarding CBM development in China are also discussed in this paper.Furthermore,the author analyzes problems arising from CBM's development and proposes reasonable suggestions.