LED was an China photovoltaic enterprises need to be prevent trouble before it happens

Recently, from the United States, the EU anti-dumping investigation and India and other countries or regions of the photovoltaic industry Chinese once frustrated, layoffs, bankruptcy, restructuring and other negative news reports. And for the same dependence on the export of the LED industry will encounter the same situation, the LEDinside forum to do a survey.

In the investigation of the staff, more than 40% of the LED industry will agree with the views of anti-dumping, they believe that the government subsidies to accelerate the LED industry is the root cause of anti invasion. At the same time, there are nearly 40% people believe that at present our upstream core technology is weak, little threat to foreign investors, will not be reversed for the time being, in addition, the 14% that the rapid development of LED industry, will repeat the mistakes of photovoltaic. 7% believe that the current Chinese LED industry accounted for a small share of the global market, do not have to worry about being anti.

China's LED industry in the short term is unlikely to encounter anti intrusion. First of all, China lampworks is currently the world's largest manufacturing base, but the core technology of LED chip, but most of the master in Europe and the United States first tier manufacturers, and they also need to borrow Chinese lamps this is married clothes sell yourself. Therefore, in China has not yet taken a large scale before the chip, foreign interests have not been damaged, naturally will not move the stone hit his feet. Secondly, LED lighting applications are in the initial stage, the market demand is showing a gradual upward trend. And the price has been to promote the LED elbow, various businesses are trying to reduce costs through technology, in order to meet the needs of consumers to buy. In the LED lighting technology is not yet ripe, the price has not yet come to a reasonable conclusion, the possibility of Chinese LED encounter anti invasion attack is not.

However, the blessing of dependence, from the photovoltaic industry, we can also see the hidden dangers of the development of LED industry:

First, the lack of core pain, limited profit. Chip is the core technology of the LED industry, but compared to Europe and the United States, our domestic R & D strength is relatively weak, many products are made in China under the guise of foreign". Due to the lack of core technology, Chinese companies often invest a lot of money to pay royalties, the profits of the bulk of the palm to foreign companies, natural meager profit margins.

Secondly, subsidies may backfire type spoil things by excessive enthusiasm. Because government subsidies is like a double-edged sword, while promoting the development of the industry, but also an important factor restricting its independent development in accordance with market rules. In order to compete for subsidies, many enterprises take a walk mentality of the herd, and even some irrelevant enterprises are mixed in, quick success, product quality production of dragons and fishes jumbled together. And the pressure of excess production capacity has forced companies to lower prices to snatch the market, the competitive environment is deteriorating.

Again, exports are not the only way to consider multi foot walking. PV industry has been exposed, revealing its lack of domestic demand, excessive dependence on export drawbacks. Similarly, LED industry also should learn a lesson. At present, many LED companies in the export business in the company's financial revenue accounted for a considerable share. If you put all your money in a foreign market, once the foreign anti-dumping proceedings, Chinese LED companies are likely to get bogged down in the mud, it is difficult to extricate themselves. Therefore, in order to preserve the strength, to avoid being hit, focusing on the export of enterprises may wish to balance the proportion of domestic and foreign markets, expand sales channels, multi foot walking, to nip in the bud.