China's Rare Earth Patent Weakness

A recent study, reported by the South China Morning Post and published in the Bulletin of the China — Chinese Academy of Sciences, reveals a significant structural weakness in China's rare earth industry. Despite China's dominance in rare earth mining (70%) and processing (90%), the United States and Japan largely control the core patents for advanced rare earth functional material technologies. These high-value applications, including permanent magnets, catalysts, luminescent, and polishing materials, account for over 80% of rare earth-related patents globally. Japan leads in permanent magnets, while the United States excels in catalytic, luminescent, and polishing materials. The study attributes this gap to China's innovation system, which produces many patents but few high-value international ones, and weak coordination among universities, industry, and intellectual property management. Researchers from the University of Science and Technology of China recommend China focus on technological gaps, dedicated research, and stronger industry-academia collaboration to improve its position in high-value rare earth technologies. China has previously leveraged its raw material dominance by tightening export controls, disrupting supply chains in India, Japan, and Europe.