China's Rare Earth Export Control Effect Is Analyzed

Rare Earth is one of the rare advantage mineral resources in China, which takes more than92%market share in the world for a long time. However, China has always had the situation of increasing export volume with the falling price. In order to deal with it, China started to implement its strict Rare Earth export regulatory policy in2004, and had put it more severe in2008.This paper analyzes the present supply and demand situation of the Rare Earth primarily, clarifies the general situation of the Rare Earth Resource, the supply and demand situation, and describes the Rare Earth export regulatory policy, the domestic production policy and its changing history in China, analyzes the function of Rare Earth Regulation. At the same time, we can conclude three periods from the standard of its seriousness:the loose control stage before2004, the relatively strict control stage in2004-2007and the strict control stage in2008to the first half of the2011.Based on the analysis of the current status of Chinese Rare Earth and its relative policy, this paper contrasts the difference of Rare Earth export market from1996to2011. And then constructs the model to measure the change of the market pricing power in the last two stages. The conclusion is that:(1) Chinese Rare Earth pricing power has been kept on rising in these three control stages, the regulatory policy had affected the pricing power positively.(2) The number of domestic Rare Earth enterprises have been decreasing, the structure of Rare Earth Industry had been optimized to some extent from export trade to domestic production.(3) The world Rare Earth supply market wouldn’t change in the short time, but the world market share of Chinese Rare Earth will reduce gradually in the long run.At last, this paper proposes the policy suggestions on Rare Earth export regulation and production management.