Study On Losing Pricing Power In Chinese Bulk Commodity Trade

In recent years, China played a more and more important role in the world. Though China makes great contribution to the development of the world economics, we don't have the pricing power in world trade of bulk commodity. Iron ore and rare earth are two respective markets by Chinese demand and supply.In this paper, we first make a brief review of these two markets including price of Chinese import and export trade. Study on the market power theory and bargaining theory, first I get the most important reason of losing pricing power (industrial concentration). Then I state other two factors: high dependency of international market and low degree of integration. In view of these reasons, I propose some countermeasures and suggestions.The point of innovation of the paper is not only based on demand but also on supply to study the losing of word bulk commodity trade pricing power. I also take the actual iron ore and rare earth markets into the economic models to generate three factors which affect the pricing power and finally propose some solutions and political suggestions.