Despite the rapid development of shale gas in China, further development encounters strong resistances owing to the impact of the late start, relatively backward technology and other factors. First, this article studies the worldwide status of technological development of shale gas, reviews key technology of shale gas exploration and development mastered in China, and compares shale gas-related technical conditions between China and foreign. Then the SWOT analysis is applied to research and analyze the factors affecting the technological development of Chinese shale gas industry, and their influence mechanism is investigated thoroughly to identify the key factors that influence the technological development of shale gas. Finally, the result shows that Chinese technological level in shale gas industry is still relatively backward, despite having made some progresses. Government support policy, Sino-foreign cooperations and exchanges and healthy competition are significant and in great need.