The study provides a comprehensive introduction to the development of the coal-based polyolefins industry (MTO/MTP) in China. The cost comparison has been conducted among the coal-based and conventional production routes to analyse the competitiveness of different processes. Both the operating and planned MTO/MTP projects have been reviewed. A series of policies and regulations from the Chinese government have been studied and their potential influence on the competitiveness of MTO/MTP projects have been evaluated.