National economic policy is key to industrial development. CBM as an efficient, clean energy, abundant in China, has a low utilization rate, so the industrial development needs to be supported by the government’s economic policies. Regulation theory in microeconomics directs and protects China’s CBM industrial development, as it adjusts itself with industrial development. A reasonable policy promotes the CBM development, which will have a farreaching influence on economy, energy structure and environment. This paper, based on a review of Chinese governmental policies regarding CBM and foreign energy industry, indicates that China is just at the beginning of CBM development, needing governmental reasonable controls to a better development, despite a lax control worldwide. A sound legislation is a guarantee of CBM industrial development.