China is pledging to shake up its rare earth industry over the next five years. An executive meeting of the State Council, presided over by Premier Wen Jiabao, says the country will take five years to create an orderly and efficient rare earth sector.

The meeting heard China's rare earth industry has been harmed by illegal mining and chaotic exports. It's calling for a faster technology upgrade, and quicker development. The State Council also says it will establish a supervision system to improve management in the industry. It will also further crack down illegal mining and production of the rare earth while pushing forward mergers and acquisitions within the sector.

The meeting also pledged to enhance research and development in key technologies for rare earth processing.