The Baiyunebo mining area in Inner Mongolia stands as one of the world's largest repositories of rare earth elements. It boasts rare earth reserves estimated between 35 million and 43 million tons, constituting 38% to 50% of the global total and an impressive 83% to 90% of China's national reserves. Beyond sheer abundance, the mining costs in this region are merely a third of those associated with comparable overseas mines, offering a substantial cost advantage.

China's rare earth industry has achieved comprehensive dominance across the entire industrial spectrum, spanning from resource extraction to material application. Its capacity for rare earth smelting and separation commands over 87% of the global market. Furthermore, the production of high-end products, such as neodymium-iron-boron permanent magnets, dominates 90% of the worldwide market. Breakthroughs have also been made in high-purity rare earth metals and rare earth catalytic materials, effectively dismantling foreign monopolies in these areas.

Capitalizing on its institutional strengths, China has orchestrated a restructuring of the global rare earth industrial chain, elevating rare earth to the status of a strategic material crucial for assessing national industrial security.