Abstract
Chinese rare earth export policies currently result in accelerating its depletion. Thus adopting an optimal export trade selection strategy is crucial to determining and ultimately identifying the ideal trading partners. This paper introduces a multi-attribute decision-making methodology which is then used to select the optimal trading partner. In the method, an evaluation criteria system is established to assess the seven top trading partners based on three dimensions: political relationships, economic benefits and industrial security. Specifically, a simple additive weighing model derived from an additive utility function is utilized to calculate, rank and select alternatives. Results show that Japan would be the optimal trading partner for Chinese rare earths. The criteria evaluation method of trading partners for China's rare earth exports provides the Chinese government with a tool to enhance rare earth industrial policies.
Highlights
Current states of RE supply and demand in China and the worldRare earths (REs), despite the name, are relatively abundant in the earth’s crust
According to the US Geological Survey (2012), the global rare earth oxide (REO) reserves were over 110 million tons in 2010 [1]
We interviewed a panel of experts from China University of Geosciences-Beijing (CUGB) and Chinese Academy of Land & Resource Economics (CALRE) who helped us refine and cluster the criteria from Table 2 into a more comprehensive matrix
Summary
Current states of RE supply and demand in China and the world. Rare earths (REs), despite the name, are relatively abundant in the earth’s crust. According to the US Geological Survey (2012), the global rare earth oxide (REO) reserves were over 110 million tons in 2010 [1]. Between 2001 and 2010, the global RE output increased 51% [2]. There is a growing RE world market demand. Top uses for RE on the world market include catalysts, magnets and metal alloys. Such uses are characterized by high specificity and high unit value. Demand for REs will continue to increase with the development of the global economy and high-tech applications
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