Coalbed methane (gas) is a high quality and clean resource, but it also causes disasters in coal mines in China. The low permeability of coal seams is the main reason that developing coalbed methane (CBM) as an energy resource is difficult, so increasing coal seam permeability is the key to CBM development in China. In this paper, the principal techniques for seam permeability enhancement are presented. The paper focuses on hydraulic technology for seam permeability enhancement (HTSPE), which is considered an economic and highly efficient technology for seam permeability enhancement. The process of HTSPE development is reviewed and the current status of the theories behind HTSPE and the technology and equipment for its use are summarized. The goal is to identify the gaps in HTSPE research and the problems in its implementation. In the future, integration and diversification of the technologies along with on-board intelligence and miniaturization may be the trends for the equipment. Finally, it is shown that tree-shaped borehole fracturing can be used to develop CBM in underground coal mines. This study could be used as a valuable example for other coal deposits being mined under similar geological conditions.