The Problem Of Development And Countermeasure Research Of Rare-Earth Industry In China

Rare-earth as an important scarce resource is extensive demanded by countries because of its unique optical thermal effect. However the rare earth resources are very scarce, very few countries product rare earth and export it. Our country is one of the most important countries that export rare earth. Our country owns abundant rare-earth resource. But the development of rare earth industry is not mature. By analyzing, some problems of rare earth industry have drawn as follows:Rare earth industry lacks of independent pricing power. Based on the resource advantage of rare earth, our country should have the pricing power of export. Because of the reasons of industry, enterprise, government and so on, part of our exports of rare earth have no international pricing power.The development of rare earth industry in our country is not sound. Because of the development time is short; the development of rare earth industry has some organizational issues, such as low degree of industrial concentration, low barriers of entry.This is mainly due to the defects of system of tax distribution and low added value of products.The paper applies the comparative analysis method. For example comparing development countermeasures of rare earth industry between main countries in the world. paper sums up experiences which are helpful to our country. By comparing three kinds of rare earth products export prices in our country and national market price, paper measures pricing power of our rare earth industry. The paper applies the quantitative method to compute absolute value to judge the rare earth industrial concentration of china and main countries in the world. Paper applies granger causality to test whether three kinds of rare earth products in our country when exported have international are pricing power or not. Paper uses mathematical model to calculate the dynamic comparison of the export prices and international market price of three kinds of rare earth products.Based on the current problems of development of industry, this paper presents corresponding countermeasures such as improving industrial concentration especial upstream enterprise to acquire the bargaining power of international trade and is convenient for national macroeconomic regulation and governance; strengthening the rare earth industry regulation, Strictly implementing administrative licensing system and improving entry barriers of rare earth industry; establishment of futures varieties of rare earth products. One of the most important reasons that our country lacks international pricing power is in the world the futures trading center which is centered on china not formed. This paper also concludes implement strategic reserves of rare earth resources. When designing a strategic reserve system our country should effectively absorbs the advanced experience of Japan and set up special rare resources protection agencies as the supreme state institutions. This helps the policies of rare earth industry to be effectively implemented. And our country should ensure the diversity of reserves.