Study On The Pricing Power Of China's Rare Earth Export

Being as essential strategic resources for development of economy, military science and technology, the Rare Earth Metal is of vital importance widely using at aerospace industry, electronic information, communication technology and military hardware etc, therefore being awarded as "industrial vitamins". Global market has a greatly increasing demand for rare earth metal coming along with the development of emerging industry, high and new technology and military; but at the same time, the Rare Earth Metal has very limited supply for the reason of non-renewable quality just like other Rare Metals. Thus, for protection of national economic development and security of national defense, the Rare Earth Metal is attracting attention and also becoming objects of strategic reserve by different countries. For China the Rare Earth Metal consumption is sharply increasing with fast economy development under condition of great population. Therefore, how to protect China's Rare Earth Metal security becoming the key point for development of economy, military science as well as technology.China is one of resource richest countries for the Rare Earth Metal in the world with global supply occupation of 90%, is well-deserved rare earth export powerhouse. But according to historic data, China's export price does not match with heavy strategic position; this article would trace in-depth reasons from the view point of market power. In international trade, market power is the key point related to benefits of individual parties and institutions, for this reason, the domination of market power would be of vital importance and essential for initiative in international trade activities. As a result, enhance China's rare earth metal prices on the pricing is particularly important.This article analyzes the possibilities of China's domination for market power in view of Rare Earth Metal's production and current trade condition, and also based on historic records and data materials. The practice demonstrates that even though there are some enhancements for China's market power in international market, it still does not match with its international market occupation, China is a country with great amount of exportation for Rare Earth Metal but less competitive in market pricing. As a result, this article analyzes that the reasons and resolutions of why China is less competitive in market pricing for Rare Earth Metal trade.