Rare earth resources have become an indispensable factor in the modern industrialized constructions all over the world in the 21st century because of their substantial strategic value. Therefore, the study of the current situation of Chinese rare earth resources and how to take a strategic protection for the future healthy development of the domestic rare earth industry is important. This paper explores the status quo of China's rare earth industry, aims to raise valuable guidance for a better development and management of Chinese rare earth industries, and suggests that the protection of the rare earth resources should be listed among our national strategies