Blind promotion: in the downfall of LED industry?

In the past 10 years, the global 500 kinds of industrial products, Chinese with scale 200 champions, but the first world behind, mostly from the government blindly subsidies, also buried overcapacity in mines, triggered a wave of Dachang closures.

Warning: blind subsidies, solar.

Several industries have been the more subsidies, the loss of money, blind expansion led to financial crisis.

From the beginning of 1997 the "large" (Editor: support in the international competitiveness of large enterprises, small and medium enterprises laissez faire struggle) policy, began a special form of the industrial development by "support subsidies".

15 years ago, China had the world's largest population, but hardly the world's first industry. China is on the road to subsidies, is the necessary evil: all industries, to grow fast, large scale.

But now it has been officially named Chinese support "of the industry, including the early coal and iron, copper, aluminum, semiconductor fabs to seven emerging industries in LED, there is excess capacity, back to the government for loving eyes.

58% of the world's solar polysilicon output in China, the world's solar cell production capacity of 46%, but also in china. Poly (GCL), Wuxi Suntech, Jiangxi LDK, Yingli, trina...... Of these, China industry, from the global industry to hold a cipher text right before and after the price, not more than 10 years. However, in August 2012, was the first brand of solar cells in Wuxi Suntech, in the huge losses, the founder of Shi Zhengrong resigned from the post of CEO, took over as chief financial officer, but has not escaped the shadow of bankruptcy. The court in Italy has also accused it of illegally setting up a solar power plant to defraud the government. Listed in the United States, the parent company Suntech electric filed a class action lawsuit by the U.S. investors, at the expense of the old little golden rooster (Wuxi Suntech) to close, to solve the problem.

Excess capacity, relying on subsidies to profit

In 2012, the solar blind expansion Chinese ate two consequences: one is the growth of the global market stagnation, drag the solar production line up to 9 Chinese stoppages, first tier manufacturers capacity utilization also hit the lowest level in the history of 5 to 7. The other is the United States and Europe against the United States, the United States in November 7th by the International Trade Commission (ITC) ruled that the Chinese battery and module for double reverse (anti-dumping, anti subsidy) to impose high tariffs. Then in November 10th, the world's largest solar market - the European Union has also announced the resumption of anti-dumping investigations against china. "Once the determination of punishment, China two or three line solar plant will have a wave of closures, Xujia Zheng expected.

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