With the rapid development of the third technological revolution, rare earths, known as "industrial vitamins", have become an important strategic resource and an important driving force for competitive development. China's rare earth industry has a numerical advantage in reserves and great potential for future market development. Jiangxi, as a national and even global medium and heavy rare earth base, is facing many challenges in the current situation of rapid changes in relations and fierce competition, including a series of problems such as insufficient innovation ability of enterprises. Therefore, the author conducted a special investigation on the operation and development of rare earth enterprises in Jiangxi.

Current situation of rare earth industry in Jiangxi

（1） Advantages. One is the advantage of mineral resources. Jiangxi Province has abundant types, high quality, and abundant reserves of rare earth minerals. It is one of the regions with medium and heavy rare earth mineral resources reserves in China, and also one of the mining and production bases for rare earth minerals in China and even the world. The regional distribution of mineral resources is obvious, with strong concentration, and the geological conditions required for mining are advantageous, which is conducive to rare earth enterprises engaging in development work. The second is the advantage in research and development technology. Jiangxi Province has a relatively complete research and development system, with multiple research and development institutions with strong R&D capabilities. Major universities have also established strong rare earth research units, providing scientific research and technological guarantees for rare earth enterprises. In the field of rare earth mining and separation smelting, 11 projects have been developed, including the preparation of ion exchange fibers by ultraviolet branching, which has effectively promoted the development of the rare earth industry in Jiangxi Province. The third advantage is policy support. Since 2016, Ganzhou City, known as the "Rare Earth Kingdom", has introduced a series of rare earth support policies, including providing financial and tax support and preferential treatment to rare earth enterprises in southern Jiangxi. This has led to a historical peak in the sales revenue of rare earth products in the province, and the comprehensive strength of rare earth enterprises has reached the national level. The fourth advantage is the industrial cluster. In recent years, the rare earth industry in Jiangxi Province has developed rapidly. Enterprises such as Jiangxi Tungsten, Ganzhou Rare Earth, and Qiandong Rare Earth have grown in scale, with a focus on developing five rare earth industry chains including rare earth luminescent materials, rare earth permanent magnet materials, and medium to heavy rare earth alloy materials. The supporting facilities of production bases are becoming increasingly perfect, and the industrial cluster effect is emerging, promoting the formation and development of a number of characteristic industrial cluster advantages.

（2） Disadvantage. One is the serious loss of resources, weak environmental awareness, and prominent pollution problems. The reserve production ratio of rare earth mines in Jiangxi Province has decreased, and the recovery rate of rare earth resources has also been continuously decreasing. In the process of rare earth mining and production, a large amount of wastewater, waste residue, and exhaust gas are discharged, causing environmental and ecological pollution to the local area. The second issue is insufficient extension of the industrial chain. According to the survey, most rare earth enterprises in Jiangxi are limited to pursuing short-term economic benefits, with low technological investment and insufficient ability to absorb research and development technology, resulting in low product added value. The development focus is on the front end of the industry, with a single product convergence and limited ability to extend the industrial chain. This has led to a scarcity of rare earth application-oriented products and high value-added downstream products, and a serious lack of momentum for enterprise development. The third issue is insufficient human resources and support. The employees of rare earth enterprises in Jiangxi have lower education levels and lack talent. At the same time, the lack of effective incentive and constraint mechanisms is not conducive to attracting and retaining talents for rare earth enterprises in Jiangxi. This directly affects the business development of rare earth enterprises in Jiangxi Province and hinders sustainable development. The fourth issue is weak industry regulation. Due to local protectionism and the lack of a unified regulatory system, coupled with poor self-discipline of rare earth enterprises, illegal mining and smuggling by the public continue to occur, resulting in serious loss of rare earth resources and low resource utilization, which seriously restricts the sustainable development of the rare earth industry in Jiangxi.

（3） Opportunity. Firstly, the development prospects of rare earths are broad, and the demand for rare earths in high-tech fields is increasing. Due to the irreplaceability and special nature of rare earths, the development of new energy, aerospace, national defense and military fields cannot be separated from the use of rare earth products. The demand for rare earths has been increasing year by year. In 2017, the global demand for rare earths increased by 5624 tons compared to 2016, and it is expected that the global demand for rare earths will increase by about 12% year-on-year in 2018. The market demand for rare earths will continue to grow. The second is the continuous deepening of globalization and economic cooperation, which provides new development opportunities. The diffusion and dissemination of rare earth production technology from abroad to China is conducive to learning from the experience of foreign enterprises in company management, research and development technology, improving the production and research and development technology level of rare earth enterprises in Jiangxi, improving the structure of rare earth products, and seizing development opportunities. Third, the "the Belt and Road" construction has provided a new pattern of development. The proposal of the "the Belt and Road" is to strengthen political, economic and cultural exchanges between countries, provide new opportunities for development for all parties, and create a new pattern of openness. Jiangxi rare earth enterprises should make good use of this macro policy, carry out structural adjustment and industrial upgrading, expand product output to industrial chain output, establish corporate brand image, improve competitiveness, and seize the market share of heavy ion rare earths in the global rare earth market.

（4） Challenge. The research and development of rare earth substitutes has had a significant impact on China's rare earth product exports. The changes in the political and economic situation have caused significant fluctuations in the rare earth market. The promotion of ecological civilization construction and the implementation of green finance policies have put forward higher environmental protection requirements. China is continuously promoting the construction of ecological civilization, and the environmental protection laws and regulations that have been successively introduced have imposed restrictions on the production, research and development, and other aspects of the rare earth industry. The country is vigorously promoting green finance policies, requiring financial institutions to provide credit and other financing, incorporating environmental assessment into the process, and continuously requiring rare earth enterprises to strengthen investment in environmental protection and pollution control. The pressure on enterprises in financing will continue to increase.

Development Path

（1） Implement a growth oriented strategy, strengthen advantages, weaken disadvantages, and promote the healthy development of rare earth enterprises. One is to strengthen technological development and expand the application fields of rare earths. Jiangxi rare earth enterprises should accelerate the construction of independent innovation capabilities, enhance their innovation capabilities, and combine academia with industry. Research institutions, universities, and rare earth enterprises should form a complete channel for the circulation of scientific research information. To develop new products and processes, we need to transform the current production and operation mode mainly based on rare earth smelting and separation, transform the scientific research mode, and improve the integration of technological resources. The second is to maintain resource advantages and establish brand image. Rare earth enterprises in Jiangxi should fully utilize big data technology, improve their insufficient control over market information, establish a complete market information system, and clearly guide their positioning and development direction. To establish brand image, use appropriate brand extension strategies to prevent the consumption of corporate image. In response to the market's demand for application-oriented and high value-added products, we will increase research and development and extend our existing product line. We need to accelerate the establishment of new brand lines, occupy favorable market positions, and establish a good corporate image. The third is to closely monitor policies and markets, and explore domestic and international markets. Rare earth enterprises in Jiangxi Province should adopt a comprehensive analysis of their internal and external environmental factors, make full use of various development opportunities provided by government policies and the market, actively open up overseas markets, strengthen cooperation with multinational companies, grow and strengthen their enterprises, enhance their ability to withstand risks, and gradually dominate the market.

（2） Implement a transformative strategy, seize opportunities, eliminate disadvantages, and achieve steady development of the rare earth industry. One is to vigorously cultivate scientific and technological talents and management talents. Enterprises should regularly train employees on knowledge and skills related to rare earth mining, production, and management. We should attach great importance to the introduction and cultivation of scientific and technological research and development talents, vigorously build technology innovation centers, and strive to develop products and equipment with independent intellectual property rights. Sales personnel provide timely feedback on customer demand information and suggestions, update rare earth products in a timely manner, adjust product structure, improve enterprise management, and clarify development direction. Managers need to have persistent motivation, the ability to discover the strengths of others, and organizational drive. The second is to attach importance to the comprehensive utilization of resources and environmental protection measures. We need to recognize the challenges faced under the current situation, actively transform our development mode, and shift towards an intensive and innovation driven development mode. We should attach importance to the comprehensive development and utilization of resources, and improve sewage and waste gas treatment facilities. Improve internal management methods of enterprises, enhance their ability to protect the ecological environment, take responsibility for environmental pollution control and restoration, and develop towards a green and sustainable new type of industrialization. Thirdly, green finance promotes the sustained, healthy, and high-quality development of the rare earth industry. Under the guidance of green finance policies, we will encourage capital and technical talents to gather in rare earth enterprises and promote their upgrading and transformation towards energy conservation and environmental protection; We should actively leverage the gathering and guiding role of financial service tools such as credit, funds, and bonds, vigorously promote the transformation and development of rare earth enterprises towards application-oriented and high value-added products, and achieve high-quality development of the rare earth industry in Jiangxi.