Energy is the lifeblood of the national economy. At present, China's energy development situation is severe, and its external dependence on crude oil and natural gas is relatively high. Considering the national conditions of coal, strengthening the clean and efficient utilization of coal is strategically significant; specifically, the clean and efficient coal transformation is an important approach. This study summarized the status quo of clean and efficient coal transformation, and analyzed the high-end, diversified, low-carbon, and intelligent development trend of the industry as well as the technology development trends that include coal transformation to clean fuels, coal transformation to bulk and special chemicals, and pollutant control in coal transformation. Moreover, the study analyzed the development challenges regarding water resources, carbon emissions, product competitiveness, and supporting policies, and proposed a development idea that is led by planning, demonstration, and innovation. The research suggests that the strategic position of clean and efficient coal transformation in the energy system should be clarified, the national coal-to-oil-and-gas strategic reserve mechanism should be established, financial credit and energy statistics policy support should be strengthened, and the scientific and technological innovation ability should be improved by building research and development platforms.