Optimization Of Export Quota And Industrial Policy Of Rare Earth

Rare earth resources are an important raw material of modern industry, which has avery considerable industrial value and economic value. Our country is the largestexporter of rare earth. More than half of China’s rare earth products have been exportedabroad, accounting for over90%of the world market share of sales. But this stablemarket structure has failed to stabilize the market price of rare earth. Rare earth priceinstability has led to the development of China’s rare earth industry in unhealthy, whichis very unfavorable for China’s rare earth industry structure improvement, and theoverall industry to upgrade high-end chain. To solve this problem, academics focusesmainly on China’s rare earth export control policy, works on study of its effect on thedevelopment of China’s rare earth industry. Rare earth export control policy in theexport quota system as the starting point, this paper analyzes the demand of the rareearth industry on the export quota system, solving the optimal design of rare earthexport quota issue through the dynamic optimization model. Then, through theinterpretation of the results of the model, we give a simple evaluation of the design ofChina’s current export quota. Finally, based on the above analysis, make somesuggestions of China’s rare earth export control policy.The structure can be divided into the following six chapters:The first chapter is an introductory part, explains the research background, purposeand meaning, content and methods of possible innovations and shortcomings. Thesecond chapter analyzes the existing difficulties about the design of Rare earth exportquota. In the third chapter, the content is about the establishment of a static model onoptimal design of China’s rare earth export quota. Then The fourth chapter explored theproblem of optimal design of export quotas based on Dynamic Optimization Model.The fifth chapter complements the shortcomings of the foregoing model analyzes. Onthe basis of the previous text, Chapter VI makes some suggestions on inadequacies ofthe current rare earth export control policy.Main innovations of this article may include:1. This paper makes a special study on the export quota as a particular perspectiveof Chinese Rare Earth Industry Export Control Policy. Most of the existing literaturefocuses on the top international pricing of rare earth products, and less go to a specialstudy of China’s export quota. And this article analyses the needs of the export quota to rare earth industry and the optimal design of the quota issue, and proposes a theoreticalidea on China’s export quotas design that needs to be considered.2. This paper conceives a solution to the theoretical model of export quotas whichbased on dynamic optimal design. The existing literatures have hardly considered toquantitatively designing the export quota. In order to protect the long-term interests ofthe maker of rare earth, this paper uses a dynamic optimization to solve the problem ofthe optimal design of rare earth export quota path, and clears that currently China’s rareearth export quotas for rare earths should be designed based primarily on needs of theinternational market. This paper has certain significance on the concrete implementationof China’s rare earth export quota system.