Rare Earth: The Key to a Great Power

Rare earths are precious strategic resources. The Shitong Group diversified by investing in rare earth companies, and not long after Shi Yunfeng became general manager of Yonghui Rare Earth Company, the industry was swept by upheaval. He and chairman Wei Shengfa clashed sharply over the government's severe crackdown on disorder in the rare earth industry and over how the company should be run. Shi Yunfeng advocated answering the government's call by changing the company's business direction, halting the extraction of rare earth resources and the export of primary products, and devoting its full efforts to developing new rare earth materials. Wei Shengfa, however, had no interest in this. He stubbornly defied government policy, putting the company in grave danger. To stop Wei Shengfa from making this mistake, Shi Yunfeng proposed a wager between the company's two largest shareholders. The stakes were tempting enough that Wei Shengfa readily accepted. In extremely difficult circumstances, Shi Yunfeng drew on his intelligence and management experience, as well as support from the parent company, Sitong Group, and partnered with research institutes. In a short time, he not only developed new rare earth permanent magnet materials and brought them into industrial production, but also went on to develop a range of other new rare earth materials, steering Yonghui onto a sustainable path centered on producing rare earth materials. Wei Shengfa lost the wager but remained resentful. His illegal activities were a time bomb for Yonghui, so Shi Yunfeng used a change in share ownership to oust him from the board and worked with regulators to crack down on rare earth smuggling. In doing so, he fulfilled the duty of a conscientious entrepreneur to protect the nation's strategic resources. This work showcases Shi Yunfeng's broad perspective on the industry and his sense of responsibility when it comes to matters of principle.