China's rare earth magnetics industry, from the beginning of the founding of a poor and white, to today's global magnetics manufacturing center, just before and after the experience of more than 50 years, can be described as the world's magnetics industry, change a miracle. During this period, permanent magnetic materials industry development in China has made achievements that have attracted worldwide attention, mainly reflected in two aspects: 1. China has gradually become the AlNiCo, ferrite magnets and Nd-Fe-B's global manufacturing center; 2 . China's per capita consumption of the value of magnetics in 1990 to 0.217 tons in 2003 soared to 1.026 tons. However, be pointed out that, even though China has become a rare earth permanent magnetic material producing countries, but not the production of power, to truly become a worldwide industry leader, there are many problems to be solved. 

     1. China's permanent magnet industry, the major problems facing the development of product output and output value of 1.1 does not fit the trend of development in recent years, from the point of view, although China's production growth momentum of permanent aggressive, and has in a number of product areas in the world occupy the first the top spot, but from the production point of view, the added value of our products is significantly lower, such a situation seriously weakened permanent magnet industry in China's overall competitiveness. 1.2 Integrated R & D capabilities, product performance and technical content is low, our existing about 10 or so specialized in magnetic materials research and development institutions: Physics, Chinese Academy of Sciences State Key Laboratory of Magnetism, Magnetic Materials Engineering Beijing University of Science and Technology Center ( National Key Laboratory), Beijing Institute of Mining and Metallurgical Research Institute of Magnetic Materials, Baotou Rare Earth Research Institute, Southwest China Institute of Applied Magnetics, Beijing, Jia, and pass the new magnetic material of Sciences, Beijing Nonferrous Metal Research Institute, Chongqing Iron and Steel Research Institution, Lanzhou University College of Physical Science and Technology Institute and other magnetic, compared with other countries, relatively small number of specialized research institutions, the average R & D strength is not strong. 

       As the permanent magnet industry in China in the product deep-processing and post-treatment process on the lack of, resulting in China's relatively low magnetic properties of the finished product, and some basic research and the transformation of research results is relatively difficult to make our products in terms of performance, few can meet the differentiated high-end market demand, and rarely has a better overall performance. Also, because the downstream sector of the permanent magnet industry pull more from foreign firms, so the machine in the magnet R & D skills and capabilities, permanent magnet manufacturer in China, compared with foreign countries there are also disadvantages. 

       Widely used on the current production process is concerned, my magnetics industry, most enterprises still belong to labor-intensive enterprises, such a comprehensive R & D capabilities, product performance and technological content and low status for China permanent magnet industry's sustained growth is a core issue. 

     1.3 patent restrictions are permanent magnet industry's future development of China's biggest bottleneck due to Nd-Fe-B patents have been dominated by Japanese and European companies, China's production of Nd-Fe-B enterprises to enter Europe and the United States and Japanese markets has been subject to considerable limitations . China has now become the world's sintered Nd-Fe-B magnets dominant producers, while domestic companies, only six companies have Sumitomo Special Metals Corporation sintered Nd-Fe-B magnets permits, they are: Beijing Zhong Ke San Huan Hi-Tech Co., Ltd., Beijing Shijingshan District, Beijing, Magnetic Technologies, Inc., Aetna science and technology, Beijing, Tsinghua Hi-Tech Development Corporation, Bank of Namibia, Ningbo Yunsheng (Group) Co., Ltd., China International Trading Company, the patent license fees of up to several million dollars; At the same time, China's bonded Nd-Fe-B magnet market is still in its infancy, and thus bonded Nd-Fe-B produced by enterprises do not much like the ring of the Shanghai Branch of Epson and other large enterprises, since almost all of its products are for export, due to the patent covering problems, we must buy from the Magnequench powder to produce can be exported to the patent coverage area of the bonded Nd-Fe-B magnets. Some small enterprises from the domestic production of bonded magnetic powder manufacturers purchase