New material is the foundation of national defence construction, the fundamental condition of new hi-tech development,the strong support of national economy, the symbol of civilization progress and what’s more, the commanding point of competitionin fields of science and technology, talents, resource and comprehensive strength among all the countrics throughout the world. In recent years, China has achieved considerable progress in R&D and industrialization of new material and a relatively highlevel in hi-tech research of new material with over 30% events reaching the international advanced stage. China is a chief source ofthulium and permanent-magnet material with the largest storage, production and export of magnesian in the world. The productionand export superhard material exemplified by synthetic diamond and borazon both come first in the world. New material industry has a great market potential. As the information industry has become the first backbone of China’sindustry, there is a rapid growth of information material, for example, the consumption of soft-magnetic material in telecommunica-tion and electronics maintains an growth rate of over 30% with that of neodymium, ferrum and boron material has exceeded 15%.The demand towards high-grade products is far beyond its supply The production of tantalum powder of high specific votume andsuper-thin tantalum wire can only satisfy a fraction of the market, which also faces a serious shortage of high-grade soft-magneticmaterial of over 10000 permeability. The long and medium-term development of China material industry is based on the following principles-a overall, strategicand forward looking guideline; closely related with national defence and security; closely related with the promotion China interna-tional competitiveness of economy and industry, closely related with the possibility of trans-technology in concerned industries,closely related with the sustainable development of national economy and closely related with the independent innovation andbreakth
