China’s rare earths trade flow analysis: Trade patterns and strategic insights

Authors

Linbin TANG, CAS Key Lab of Urban Environment and Health, Institute of Urban Environment, Chinese Academy of Sciences, Xiamen 361021, ChinaFollow
Peng WANG, CAS Key Lab of Urban Environment and Health, Institute of Urban Environment, Chinese Academy of Sciences, Xiamen 361021, China; College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China; Ganjiang Innovation Academy, Chinese Academy of Sciences, Ganzhou 341119, China
Wei CHEN, CAS Key Lab of Urban Environment and Health, Institute of Urban Environment, Chinese Academy of Sciences, Xiamen 361021, China
Yawen HAN, School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China
Yuning JIN, CAS Key Lab of Urban Environment and Health, Institute of Urban Environment, Chinese Academy of Sciences, Xiamen 361021, China
Zilong PENG, Ganjiang Innovation Academy, Chinese Academy of Sciences, Ganzhou 341119, China
Weiqiang CHEN, CAS Key Lab of Urban Environment and Health, Institute of Urban Environment, Chinese Academy of Sciences, Xiamen 361021, China; College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China; Ganjiang Innovation Academy, Chinese Academy of Sciences, Ganzhou 341119, ChinaFollow

Keywords

material flow analysis, rare earths, supply chain security, competition strategy

Document Type

Policy & Management Research

Abstract

Rare earth elements are strategic critical metals that support low-carbon energy, aerospace, and defense technologies. Currently, China’s rare earth industry lacks competitiveness and faces the risk of “multidimensional pressures” in global competition. Therefore, it is crucial to systematically analyze the supply-demand and trade patterns of rare earths, accurately identify the bottlenecks and pain points in China’s entire rare earth industry chain, and provide strategies to transform China’s rare earth resource advantage into a strategic competitive edge. Based on customs trade data, this study traces the trade flows of various forms of rare earth products across the full industry chain in China from 2015 to 2022, delineates the spatial patterns of China’s rare earth product trade, and explores China’s contributions, risks, and strategies for improving its position in the global rare earth value chain. The study reveals that: (1) Since 2018, China has transitioned from being a net exporter to a net importer of rare earth resources, with the resource advantage shifting towards the scale advantage of the smelting and separation industry, positioning China as a “smelting and separation center” in the global rare earth supply network; (2) On the import side, China imports both upstream rare earth ores and mixed resource products, as well as downstream high-purity rare earths and high-performance permanent magnets, indicating a dual risk of external dependence; (3) On the export side, China primarily exports light rare earth separation products and medium-to-low performance permanent magnets, which are characterized by low added value and homogeneity, facing challenges related to insufficient competitive advantage. Therefore, it is recommended to further conduct systematic, multidimensional, and differentiated precision management and coordinated governance of the entire rare earth industry chain, including: (1) Balancing international and domestic markets, considering both domestic standardized stockpiling and overseas diversified resource and capacity layouts to consolidate China’s existing production scale advantage; (2) Accelerating breakthroughs in the manufacturing technology bottlenecks of high-performance rare earth permanent magnets and high-purity rare earth separation, guiding the extension and strengthening of the rare earth industry chain, enhancing the stickiness of rare earths in strategic emerging applications, and reinforcing and expanding China’s technological advantage and control in downstream manufacturing; (3) Supporting rare earth enterprises in deeply participating in global rare earth resource governance and technological cooperation, strengthening a China-centric global rare earth supply chain network, and promoting the co-construction of an integrated, globalized, and fair competition order for rare earth supply chains.

First page

2074

Last Page

2085

Language

Chinese

Publisher

Bulletin of Chinese Academy of Sciences

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Recommended Citation

TANG, Linbin; WANG, Peng; CHEN, Wei; HAN, Yawen; JIN, Yuning; PENG, Zilong; and CHEN, Weiqiang (2024) "China’s rare earths trade flow analysis: Trade patterns and strategic insights," Bulletin of Chinese Academy of Sciences (Chinese Version): Vol. 39 : Iss. 12 , Article 7.
DOI: https://doi.org/10.16418/j.issn.1000-3045.20240912004
Available at: https://bulletinofcas.researchcommons.org/journal/vol39/iss12/7