China's LED industry has been leaping forward in the past two years. Under the expectation of the country's favorable policies and investment companies' rising profits, it has set off a crazy investment frenzy.
Taking Shenzhen as an example, since 2009, its annual turn subsidy in the LED industry is no less than 100 million yuan, and it is growing every year. The Guangdong Provincial Department of Science and Technology has set up special funds to support the development of the LED industry. During the “Twelfth Five-Year Plan†period, the Guangdong Provincial Finance invested 450 million yuan in this part each year.
However, policy support does not necessarily lead to the healthy development of the industry. In the ever-increasing market share of competition, the LED market is overcapacity and the products are not standardized. In 2013, a group of LED companies closed down and poured cold water into the industry. Even large companies with a scale of more than 100 million yuan can not escape this robbery. This is easily reminiscent of the photovoltaic industry that was once glorious and now in trouble.
Beyond the industrial dilemma, what is even more troublesome is what happens in the dark. Some insiders have indicated that in order to compete for special funds, enterprises have obtained government LED projects and fully invoked corporate connections and government resources. Some even made it clear: "The first step is to apply for a subsidy. The first step is to connect with the person in charge of the competent department to see who is more liked by the government."
The result of this is often very bad. Some enterprise projects have not done enough, but because they have received tens of millions of government subsidies because of their relationship with the government, they cannot survive in the market.
Many companies can only take the low-cost route to seize the market due to backward technology, and the final outcome of this behavior is the death of the company.
At this time, Li Xinghua, director of the Guangdong Provincial Department of Science and Technology, was reviewed. This person is very unusual with the LED industry. Guangdong Zhongshan is currently a concentrated area of ​​the LED industry. According to statistics, in 2012, there were more than 1,200 LED companies in Zhongshan, with an annual output value of 35.65 billion yuan.
These enterprises have sprung up in Guangdong Province with the strong support of the LED industry. In the “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province†released in May 2012, Guangdong will take the lead in promoting the application of LED lighting products in the public lighting field. According to the plan, the scale of the LED industry in Guangdong Province will reach 500 billion yuan at the end of the “Twelfth Five-Year Plan†period. Such "financial fierce drugs" often appear in China. From photovoltaics to LEDs, China's emerging technology industry seems to have been difficult to escape.
Due to the limited development of science and technology in China and the low level of marketization, it is difficult for market investment to have a lasting pull on the industrial economy. The lack of market has given rise to the rationality of government intervention. China's "emerging industries" are almost all prospered by the strong government, and then there is overcapacity.
Because of this, the government's high investment has left many hidden dangers. Just after Li Xinghua was investigated, people speculated about how big the industry shock would be. Individuals who master the power of industrial capital to amplify, this reality will inevitably lead to power rent-seeking and ultimately make the technology industry a "hardest hit" for corruption and fraud.
In fact, the fundamental problem lies in the government's policy support for the development of emerging industries, but it does not provide protection in the industry norms. Many high-input technology industries, China does not have core technology, and often can only expand the market scale with low-cost strategy.
Under this kind of thinking, few companies will really devote themselves to technology and R&D. Many government projects have not really achieved the effect of assisting the industry, and most of them have become financing means. Under the unhealthy market conditions such as a large amount of capital investment, immature technology and vicious competition, the risks of emerging industries such as LEDs continue to increase.
Many companies have now raised their vigilance. According to the latest statistics of the High-tech LED Industry Research Institute (GLII), the newly-planned investment in China's LED industry in the first half of 2013 was 37 billion yuan, down 16% year-on-year. However, large-scale, large-scale, large-capacity, and rapid investment over the years has caused the economy to fall into a more serious pattern of structural imbalances and slow transformation.
It is reported that an LED industry veteran also said that government subsidies may not be a good thing for the industry itself, and sometimes it will affect the market to play its normal detoxification function. At the Guangdong Provincial People's Congress group discussion on July 31, a representative of the Guangdong Provincial People's Congress said: "Promotion to the market, let the market choose, the market is the most choice."
Many emerging technology projects are just using new concepts to defraud government subsidies. China’s emerging industry development strategy is difficult to deal with when the marketization process has not entered a benign track, the relationship between the government and the market has not been effectively rationalized, the market is still firmly controlled by the government, and the market’s role in resource allocation is seriously lagging behind. Economic growth plays a positive and positive role.
However, the state's attention to emerging industries is undoubtedly high, and the corresponding policies are issued at a relatively fast pace, and some policies even exceed market expectations. Whether the policy is a blessing or a disaster for the industry is another problem. If the enterprise itself can seize the opportunity and practice hard, it may usher in the dawn.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
Taking Shenzhen as an example, since 2009, its annual turn subsidy in the LED industry is no less than 100 million yuan, and it is growing every year. The Guangdong Provincial Department of Science and Technology has set up special funds to support the development of the LED industry. During the “Twelfth Five-Year Plan†period, the Guangdong Provincial Finance invested 450 million yuan in this part each year.
However, policy support does not necessarily lead to the healthy development of the industry. In the ever-increasing market share of competition, the LED market is overcapacity and the products are not standardized. In 2013, a group of LED companies closed down and poured cold water into the industry. Even large companies with a scale of more than 100 million yuan can not escape this robbery. This is easily reminiscent of the photovoltaic industry that was once glorious and now in trouble.
Beyond the industrial dilemma, what is even more troublesome is what happens in the dark. Some insiders have indicated that in order to compete for special funds, enterprises have obtained government LED projects and fully invoked corporate connections and government resources. Some even made it clear: "The first step is to apply for a subsidy. The first step is to connect with the person in charge of the competent department to see who is more liked by the government."
The result of this is often very bad. Some enterprise projects have not done enough, but because they have received tens of millions of government subsidies because of their relationship with the government, they cannot survive in the market.
Many companies can only take the low-cost route to seize the market due to backward technology, and the final outcome of this behavior is the death of the company.
At this time, Li Xinghua, director of the Guangdong Provincial Department of Science and Technology, was reviewed. This person is very unusual with the LED industry. Guangdong Zhongshan is currently a concentrated area of ​​the LED industry. According to statistics, in 2012, there were more than 1,200 LED companies in Zhongshan, with an annual output value of 35.65 billion yuan.
These enterprises have sprung up in Guangdong Province with the strong support of the LED industry. In the “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province†released in May 2012, Guangdong will take the lead in promoting the application of LED lighting products in the public lighting field. According to the plan, the scale of the LED industry in Guangdong Province will reach 500 billion yuan at the end of the “Twelfth Five-Year Plan†period. Such "financial fierce drugs" often appear in China. From photovoltaics to LEDs, China's emerging technology industry seems to have been difficult to escape.
Due to the limited development of science and technology in China and the low level of marketization, it is difficult for market investment to have a lasting pull on the industrial economy. The lack of market has given rise to the rationality of government intervention. China's "emerging industries" are almost all prospered by the strong government, and then there is overcapacity.
Because of this, the government's high investment has left many hidden dangers. Just after Li Xinghua was investigated, people speculated about how big the industry shock would be. Individuals who master the power of industrial capital to amplify, this reality will inevitably lead to power rent-seeking and ultimately make the technology industry a "hardest hit" for corruption and fraud.
In fact, the fundamental problem lies in the government's policy support for the development of emerging industries, but it does not provide protection in the industry norms. Many high-input technology industries, China does not have core technology, and often can only expand the market scale with low-cost strategy.
Under this kind of thinking, few companies will really devote themselves to technology and R&D. Many government projects have not really achieved the effect of assisting the industry, and most of them have become financing means. Under the unhealthy market conditions such as a large amount of capital investment, immature technology and vicious competition, the risks of emerging industries such as LEDs continue to increase.
Many companies have now raised their vigilance. According to the latest statistics of the High-tech LED Industry Research Institute (GLII), the newly-planned investment in China's LED industry in the first half of 2013 was 37 billion yuan, down 16% year-on-year. However, large-scale, large-scale, large-capacity, and rapid investment over the years has caused the economy to fall into a more serious pattern of structural imbalances and slow transformation.
It is reported that an LED industry veteran also said that government subsidies may not be a good thing for the industry itself, and sometimes it will affect the market to play its normal detoxification function. At the Guangdong Provincial People's Congress group discussion on July 31, a representative of the Guangdong Provincial People's Congress said: "Promotion to the market, let the market choose, the market is the most choice."
Many emerging technology projects are just using new concepts to defraud government subsidies. China’s emerging industry development strategy is difficult to deal with when the marketization process has not entered a benign track, the relationship between the government and the market has not been effectively rationalized, the market is still firmly controlled by the government, and the market’s role in resource allocation is seriously lagging behind. Economic growth plays a positive and positive role.
However, the state's attention to emerging industries is undoubtedly high, and the corresponding policies are issued at a relatively fast pace, and some policies even exceed market expectations. Whether the policy is a blessing or a disaster for the industry is another problem. If the enterprise itself can seize the opportunity and practice hard, it may usher in the dawn.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
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