Abstract:This paper analyzed the situation of China's coal industry by applying the industrial organization theory of the Harvard School,and the conclusion is as followed:for China's coal mining enterprises,the market concentration is low,the production and management are rough,the competition is out-of-order,the waste of resources is serious,the safety status is worsening,the efficiency is low,the technological progress is slow,and the general performance of the industry is poor etc.And some suggests to achieve the rational utilization of coal resources and the sustainable development of coal industrial economy are presented,such as setting up a large coal groups,improving the degree of the industrial concentration,enlarging the scale effect of the enterprises,strengthening the institutional and technological innovations in the coal enterprises,improving the core competitive power of the coal enterprises.