Objectives:The permeability of coalbed reservoirs in China is generally 1~2 orders of magnitudes inferior to that of US, leading challenges in coalbed methane (CBM) development. In this paper, the controlling factors of coalbed reservoir permeability are discussed and CBM development strategy is proposed. Methods: Based on insitu permeability data and related geological data from 33 areas/mine sites covering almost all sedimentary basins under CBM exploration and development, this paper carries out a comprehensive analysis of the main controlling factors of coal permeability. Results: The study shows that the permeability is controlled mainly by coal body structure, megascopic fracture and microscopic cleat/fracture density and cleat/fractue filling due to tectonic evolution and related fluid activities as well as by the insitu stress. Complex coal body structure, highly filling status and high insitustress, are the main factors leading the permeability to be low in sedimentary basins in China. Conclusions: Moderate tectonic deformation producing megascopic fracture enhances coal permeability and strong tectonic deformation is detrital to coal permeability. Mineral filling in cleat/fracture system and higy insitu stress is detrital to permeability preservation. Based on logging interpretation, the mylonite coals should be screened out for fracturing operations in highly stressed situations. Due to highly filling status of cleat/fracture system in Carboniferous—Permian coals in northern China, the development and application of acidizationfracturing technology is a new and helpful direction. The insitu stress amplitude and stress types are to be appropriately evaluated for fracturing design. Finally, due to high insitu stress conditions, the drainage of CBM well should be controlled with a schedule of stepwise depressuring.