The Research On The Improvement Of Rare Earth Export Trade Of China

Rare earth trade is one of the main focuses in international trade, as it is widely used in high-tech fields, such as aerospace, power electronics, motor control. Though China’s rare earth reserves ranks first in the world, it provides 80% of the rare earth supply. What’s worse, the price of rare earth is much lower than other resources. As a result, it is important to learn about our country’s rare earth industry, and offer useful suggestions to change the situation.To make a good understanding of the problems existing in rare earth trade, this article uses free trade theory, strategic trade theory to analyze it. By collecting the data in rare earth industry, this article reveals Chinese RE products has been underestimated and can’t get a fair price. Then this article uses empirical analysis to analyze the affecting factors of Chinese RE products, and gets the conclusion that the industry concentration, the international commodity price and policy is the main course. Then this article analyze the affecting factors of cost, and gets the conclusion from the economical point of view:low labor costs and tax costs lead the low-tech in RE industry. This article also uses method of case study to analyze some enterprises, and reveals the importance of whole industry chain.In the end, this article offers some suggestions to government and firms separately, and hopes to change the unfavorable situation.