Wang Caifeng, a former official of the Ministry of Industry and Information Technology, who is setting up the group, said the association will act like China Iron and Steel Association, to assist companies in exports and international cooperation and to lead price talks with foreign buyers.

Currently, there are six ministry-level agencies overseeing the sector.

Niu Jingkao, deputy secretary-general of the Chinese Society of Rare Earths, said the measures will help raise prices for exports, which many experts believe have long been undervalued.