Affected by economy recession started since 2008, global consumption became weak.Chinese rare earth industry,which has high dependence on the consumption from outside China,experienced a tough period of time led by an abrupt decrease in demand. Prices of rare earth products dropped rapidly and significantly and fluctuated at a low level near the cost line persistently.The market was very grim in 2009. At the beginning of 2009,Chinese government set down ten industry revitalization and development pro- Affected by economy recession started since 2008, global consumption became weak. Chinese rare earth industry, which has high dependence on the consumption from outside China, experienced a tough period of time led by an abrupt decrease in demand. Prices of rare earth products dropped rapidly and significantly and fluctuated at a low level near the cost line persistently. The market was very grim in 2009. At the beginning of 2009, Chinese government set down ten industry revitalization and development pro-