材料期刊网

China is abundant of rare earth resources, it has been the biggest producer, consumer and supplier. The superiority and the scale within the last 40 years make it possible to develop China's rare earth industry in a higher degree.But the superiority of rare earth resources has not turned into the economic superiority, and the development of rare earth industry in China with high speed does not lead to high benefits. Therefore, it has become the hot point and vital task now how to resolve the main problems of rare earth industry in China and how to make its rare earth industry grow healthily and steadily through transforming resources, adjusting structure, escalating industry, bringing forth new ideas in technology. This article aims at analyzing the competitive power of China's rare earth industry in the application of "Diamond framework, Determinants of National Advantage" written by Michael Porter, the well-known economist,based on the analysis, the author puts forward a strategic proposal to raise the competitive power.