Abstract: In the past decade, the supply of China rare earth products accounted for 90% of theworld’s demand, which led the rare earth supply market. But the international price of rare earth has long been controlled by rare earth practical application and large-consuming countries, such as Europe, America, Japan and other powerful countries. Prices of China rare earth have been always restricted. From the year 2010 to 2011, greatly improving prices of China rare earth caused the shock and vibration of the domestic rare earth industry chain. Simply improving price does not mean that China won the right of determining aproduct’s price. After careful analysis of the serious problems of China rare earth, we can find that by the reversing concept, adjusting the industrial structure, improving the access threshold to rare earth industry and other concrete and effective policy measures, which could realize the sustainable development of rare earth industry,which is also the fundamental way of obtaining rare earth pricing right.