The phenomenon of investment dependence in China's LED industry

Emerging industries LED optoelectronics is also one of the strong promotion of the government and the emergence of a serious excess capacity, the relative surplus. No government is so strong in determining investment objectives and direction, size and quantity. Because of this, China's high investment rate has left too many hidden dangers.

In our country's reality, the impact of the market on investment is still very weak, weak, more cases, the government played a leading role.

Even corporate investment, but also the government to play a role.

Emerging industries LED optoelectronics is also one of the strong promotion of the government and the emergence of a serious excess capacity, the relative surplus.

No government is so strong in determining investment objectives and direction, size and quantity.

Because of this, China's high investment rate has left too many hidden dangers.

We have seen that over the years, large-scale, large efforts, large capacity, fast speed of investment, has made the economy into a more serious structural imbalance, slow transition pattern.

Therefore, the relationship between the government and the market benign orbit, have not entered in the marketing process can not effectively rationalize the market, is still firmly in control of the government, the role of market allocation of resources is seriously lagging behind the situation, large-scale investment on economic growth has been difficult to play a positive role.

Beginning in 2009, Shenzhen in the LED lighting industry each year, the special subsidy funds of not less than 100 million, and the annual growth trend.

Indeed, by 2013, the development of domestic LED industry has been a qualitative leap, and in the middle and lower reaches of the industry product contains epitaxial silicon, LED package and other components, both the quantity and the technology, are showing steady growth trend.

With the rise of emerging industry LED companies, LED market this cake, more and more enterprises share more LED, the battle for market share, has led to many LED enterprises have undergone fundamental changes in the layout of the market, the most obvious is that the excess production capacity, product quality is uneven in quality, the industry standard is not reasonable.

One of the main factors is that China's market level is too low, the investment can not be a market element of China's economy has a sustained and sustained growth factors.

In order to give full play to the investment stimulating effect on the economy, unless there are special circumstances, such as the economic crisis, financial crisis, economic catastrophe, must be market-oriented, objectives, by the market to decide the direction of investment, investment scale and investment amount.

Only by following the laws of the market, the market mechanism and the market principle, the quality and efficiency of the investment can be improved, and the stimulating effect of the investment on the economy can be maximized and the most effective.

A wave of, indeed promoted the development of LED a few large enterprises, small and medium sized LED enterprises also benefit from a little, at the same time, a lot of the Shenzhen LED lighting companies have fallen, mainly because of excessive investment, financial costs are not well controlled, the enterprise is down.

In addition, there are serious defects in the evaluation of investment quality and efficiency.

Generally speaking, the concept of "fixed assets growth rate" has become the main obstacle to restrict and affect investment.

If you cannot make a scientific evaluation on investment quality and efficiency, no scientific evaluation system and standard, excessive dependence on government led investment, enterprise slack and hardly has the independent ability to Chong Hing like this so, high rate of investment is likely to be a disaster.