They are not flooding the world as you put it when the value adding is done in China.
Compare the amount of REE used in China to the amount they export and you will find the answers you seek.
If you find Bayan Obo on google earth maps you will discover that it is in the middle of nowhere so I don't think they will be cleaning up there in the near future.
That is where most of the pictures of the destruction all emanate from
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