After two years, WTO preliminary ruled against China in the lawsuit that filed by the US, Japan and European Union against China's rare earth trade. From ANBOUND’s point of view, it is time for China to adjust its rare earth export strategy. China should abolish export quotas and adopt a market-oriented approach such as substantially increasing export tariff on rare earth. Meanwhile, China can impose heavy taxes on environmental protection and restrict domestic enterprises from accessing the rare earth field under the environmental protection measures. In addition, China needs to strictly forbid private mining, excessive production capacity and smuggling, while vigorously develop downstream rare earth application. These are the fundamental measures to solve China’s rare earth issues.