In order to scientifically evaluate rare earth industry's periodic fluctuation and deeply depict the trajectory of rare earth with the change of sequence,the study used sequential global principal components analysis method to find main cause of influencing periodic fluctuation of rare earth industry in China,correctly reflected rare earth industry's periodic fluctuation,provided theoretical basis for correct economic decision-making of the industry. The study found that from 1990 to 2013,the climate cycle of rare earth industry in China experienced three complete cycles roughly. From the point of comprehensive effect of principal component,for the domestic market,the factors with significant influence to climate cycle of rare earth industry are export tax rate,domestic consumption,control index of total exploitation amount,oxide price,total exports,metal price,total production and export quotas in turn; For foreign market,the factors with significant influence to climate cycle of rare earth industry are exports,total production and export quotas in turn. The comprehensive effect of other factors was smaller.