ABSTRACT
As the world's largest producer and exporter of rare earth——China，China's gains and losses is important to China and the world's rare earth industry. Although from a variety of statistical data of rare earth we know that China is a real trading nation, but the superpower of rare-earth trade failed to cause significant improvement of trade conditions. But with import and export price fluctuation of rare earth, their welfare volatility. This paper is based on empirical and theoretical to analysis the changes of their welfare. And this paper is divided into five chapters, first of all is the introduction and literature review, secondly,we analysis the evolution of the domestic policy about rare-earth, in chapter 4,we analysis the change of the welfare by tariffs and quotas ,at last is the final conclusion. In the paper, we know from the data analysis that it is necessary to take reasonable trade protection to protect rare earths, and it may improve the welfare, so it’s necessary to protect the rare earth trade.
Key words: rare earth trade, trade protection, welfare analysis, China
