Abstract: Rare earth as China's advantage mineral resources occupies an important strategic position in China's economic development and national defense.In recent years,the China's government issued and implemented a series of policies related to rare earths,which are crucial for rare earth industry development healthily and orderly.These policies had positive effects in rare earth industry integration and the key technology research,and get gratifying changes in supply and demand,consumption structure and product prices.Meanwhile,International rare earth situation are quietly changing,such as the WTO dispute case against China losing,the acceleration of foreign rare-earth exploration and new technology research and the United States,Japan,France and Germany actively seeking rare earth partner.China's rare earth products locating at mid-low rank in international rare earth industry chain has not been thoroughly changed.All this,both opportunities and challenges,how to grasp the opportunity and deal with the challenge?From the healthy development of the industry,The author thinks that should from the three aspects to strengthen:Firstly,actively developing rare earth application field and new materials research in our country;Secondly,optimizing the structure of rare earth industry,increasing awareness of intellectual property,enhancing China's rare earth industry international competitiveness;Thirdly,taking into account environmental costs in order to strengthen environmental supervision from the cost.