Abstract: Rare earths are strategic mineral resources. The “de-Sinicization” of the industrial layout in the rare earth supply chain poses a significant threat to China’s global competitive edge in the rare earth industry. This paper investigates the organizations involved in rare earth resource development and international cooperation within the industrial chain among countries in the Asia-Pacific Region, including the United States, Australia, Japan, South Korea, Vietnam, and others. The research leads to the following conclusions: ① the Asia-Pacific Region is the most dynamic area in the global rare earth supply and industry chain. It not only boasts a significant output of resources but also features a gradually maturing production capacity scale and a relatively complete industry chain. The rare earth industry chain in the Asia-Pacific Region is centered on Australian resources for raw material supply, undergoes preliminary processing in Malaysia, advanced processing in South Korea and Japan, and finally, the end products are exported to the United States to fulfill the application demands of both military and civilian markets. ② The United States spearheads the integration of the rare earth industry chain in the Asia-Pacific Region. The international division of labor and cooperation within this industry chain exemplify the United States’ control over key industries. ③ Japan, South Korea, and Australia are all “Free Trade Partnership” countries in the United States market and benefit from tariff advantages in their trade relations. Moreover, the United States has been hesitant to bear the environmental costs associated with the upstream stages of the rare earth industry chain, and its environmental regulations for this sector remain largely unchanged. Consequently, the Asia-Pacific Region rare earth industry chain offers potential opportunities for Vietnam’s participation. ④ In the long term, the Asia-Pacific Region rare earth industry chain could potentially challenge China’s dominance in the global rare earth market. This is evident not only in the governmental collaborations among Japan, South Korea, the United States, and the European Union but also in the economic agreements at the enterprise level. Midstream and downstream rare earth enterprises prepay production investments for upstream companies through orders, thereby establishing a mechanism for cost and risk sharing across the entire overseas rare earth industry chain. This paper argues that the nation should resolutely safeguard China’s advantage in its highly concentrated rare earth production capacity while restricting the overseas transfer of domestic industries and export of production capacity. Continuously enhancing the technological and market competitiveness of rare earth products, as well as improving the application level of automation technology. These are the fundamental strategies for addressing competition within the rare earth industry chain led by the United States, and represent an effective strategy for curbing the competitive advantage of labor factors in countries like Vietnam. In the contemporary era of economic competition among global powers, China must focus on retaining its industries and production capacity domestically.