WSJ reported that China plans to set up a rare earth conglomerate.

Mr Su Bo vice minister for Industry and Information Technology said that “The final results of that plan will be released by the end of the year. The central government is also stepping up efforts with local authorities to eradicate illegal rare earth mining.”

Beijing has said that the country's rare earth industry which controls 95% of global output, is too fragmented and plagued by smuggling and other problems. Rare earth metals are used in the manufacture of high tech wares ranging from iPhones to missile systems.