LED industry how to grasp the government subsidies?
2016-07-08 10:41:31

 For the lighting industry, LED subsidies is clearly not a fresh vocabulary, the Chinese government began to subsidize the LED lighting industry since 2009, the central government has 6 consecutive years of subsidies for the semiconductor lighting industry. Under the support of subsidies, LED industry, especially the LED chip industry is indeed ushered in the development of blowout. Since 2013, China's LED industry ushered in the spring policy, from the State Council to local governments have introduced policies to vigorously promote LED, local government and called on countries to promote green lighting project will led lighting products put on the promotion plan.

 
LED the development of the natural government subsidies to support the development of the government, there are research shows that the domestic semiconductor and LED companies receive government grants are considerable, and even corporate access to government subsidies Jin Zhanqi often profit of nearly 5%.
 
The so-called subsidy is refers to a government or any public body to domestic producers or exporters to provide funds or financial incentives, including cash subsidies and other preferential policies, to make their products in the international market than did not enjoy the subsidies of similar products in a favorable position in the competition.
 
For government agencies to give LED corporate subsidies, some people think that subsidies are conducive to the growth of local enterprises, but also some people think that the government should not interfere with the development of the market economy. In fact, whether the government subsidies for the entire LED lighting industry or business is a double-edged sword, to a certain extent, to support the development of industry and enterprise. In fact, in recent years, China's LED lighting market continues to grow every year to more than 30% of the rapid development of the increase. In 2014, traditional electric light source products in full retreat, LED lighting terminal application penetration continues to improve; 2015, due to the influence of the global economic environment, LED lighting industry growth started to slow down, the industry has entered a comprehensive transformation of the integration phase.
 
One of the main reasons for the rapid development of LED industry, is inseparable from the local government's vigorously support and guide the development of the industry, which led enterprises in the fierce market competition, a number of local government are the corporate purchasing gave large grants and subsidies, so as to effectively accelerate the industry consolidation.
 
But in the long run, the government vigorously subsidies to support LED enterprises still have some drawbacks. The United States had on Chinese export subsidies to the WTO filed a lawsuit that China's heavily subsidized the CE the unfair competitive advantage to disturb the market, foreign trade friction has intensified the trend; from the point of view on the other hand, part of the business of government subsidies have great dependence, using government subsidies to the actual situation of the decoration business.
 
All in all, there are advantages and disadvantages of government subsidies, which depends on how to grasp the scale of the enterprise. Good use, can enhance their own innovation and production capacity, and constantly enhance the intrinsic value of the product, if the use of improper may also be submerged in the tide of the integration of the LED industry.

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