Abstract
China not only has the largest amount of rare earth reserves, but it also produces the most rare earth products. However, China lacks appropriate supervision and management systems of its rare earth industry. The Chinese government's inappropriate mechanisms have been cause for reckless development by national rare earth providers characterized by excessive competition, environmental pollution, and smuggling. In response to the problems, China implemented regulatory measures to restructure the rare earth industry. The Chinese central government intensifies its efforts to control the total quantity of rare earth products and tackle environmental pollution. Six leading conglomerates have been selected to promote the Chinese central government's policy. A new environmental guideline has been drawn up to reduce the discharging of wastewater and air pollution substance. Huge transition and a great influence of its policy changes are expected. These policy changes are bound to entail huge transitions, and the policy is expected to have a great influence in the future structure of the rare earth industry. In consideration of these changes, the Korean government, in collaboration with private enterprises needs to take appropriate measures, such as overseas resources development, R&D expansion, tactical stockpiling, professional manpower training and so on.
