China is now the world's largest producer, exporter, and consumer of rare earth resources.

According to statistics from Chinese Ministry of Industry and Information Technology (MIIT), China boasts 83.63 million metric tonnes of discovered rare earth reserves, 55 percent of the world's total.

In 2008, China produced 125,000 tonnes of rare earth minerals, and 135,000 tonnes of rare earth products via smelting and separation. Meanwhile, the world altogether consumed around 130,000 tonnes, 70,000 tonnes of which originated from China.

"China now is capable of producing over 400 kinds of rare earth products under nearly 1,000 different specifications," said Wang Caifeng, vice head of the MIIT's raw materials department at the China Rare Earth Society's 30th anniversary conference held in Beijing over Tuesday and Wednesday.

In the corresponding period, China exported 34,600 tonnes of rare earth products to 45 countries and regions, valuing 561 million US dollars.

"However, China's rare earth industry is also facing some serious problems, despite all of its achievements," Wang added. Included are highly wasteful exploration techniques, severe environmental pollution, and relatively inefficient technology applications.

Wang expected that by 2015 demand for rare earth products would reach 210,000 tonnes globally and 138,000 tonnes domestically.