Facing the pressure of short supply and alleviating the problem of energy pollution, China has to increase the pace of shale gas exploration. During the "Twelfth Five-Year Plan" period, Chinese government and oil companies actively promoted the development of shale gas. All aspects have made certain progress. At the same time, a series of preferential and support policies were drafted to encourage the shale gas exploration. However, due to still in initial stage, shale gas development in China has many challenges and obstacles. This paper systematically reviews the current status and policies of shale gas exploration in China, aiming to provide important guidance for policy makers. In this article, the author first describes the current state of shale gas development in domestics, including progresses and difficulties. Next, the author reviews Chinese shale gas development policy. Then, the current policies and implementation barriers are analyzed. Finally, specific policies are recommended with key conclusions.