How to balance the policy support and global market LED

In 2012, LED industry Chinese farce heavily, from the beginning of the deshida start to run away now big boss "door" event horizon photoelectric arrears, LED industry always tell people, the reality is so cruel. On the whole, the Chinese mainland LED market share has increased, but the LED value of a larger rise, so that companies are clearly feeling the pressure.

Layman watching, experts see the doorway. Large LED companies frequently failed to prove that the crisis in the LED industry beyond the scope of the industry reshuffle. In the final analysis, LED fire, but also let the LED industry itself lit. LED products energy saving and environmental protection, but this is not the direct cause and the fundamental motivation of people to invest in the cause of LED, money, is the last word!

Under the guidance of macroeconomic policy, the rapid development of China's LED industry, but subject to the impact of price, technology, products and other aspects of the terminal market in a weak state. Even so, there are still many companies to switch to the LED industry or many large LED companies continue to expand production capacity, to the market caused a greater squeeze, overcapacity situation. So many LED enterprises to a embarrassing situation. Especially LED in the upstream industry, competition in the market, production capacity has become a part of market competition, enterprises need to have a larger scale, and the equipment investment cost is high, resulting in enterprise business risks encountered, not quickly turn around. In order to allow the normal operation of the enterprise, only the local government to accept the conditions of the temptation to go into production.

LEDinside reporter statistics, the current local government to attract LED companies to the local conditions of the production of the following aspects:

First, the land, plant of large LED enterprise covers an area of large, coastal city industrial base is perfect, government of general production enterprises to grant land to support small, while the second tier city to rely on LED this new industry brings wealth as a support enterprise to encourage local production in the land;

Second, support facilities, many local governments in order to attract high-quality enterprises to local production, and improve the investment area surrounding facilities, these facilities are both transportation facilities, also has a soft sales channel support;

Third, the enterprise income tax relief support, this is the most common type of investment, the implementation of the method usually has three two half free, 3% of the local income tax will be avoided, 30% of the two tax halved to 7.5%, some even set up free trade zone to attract enterprises to invest and set up factories;

Fourth, financial subsidy and reward the achievements of science and technology, in the LED industry is very common, because the LED industry is an emerging industry, the higher gold content to increase the local GDP, also can optimize the industrial structure, so it will get financial support and technology award.

Five, local government engineering support, local enterprises to put into production after the change can get the local energy-saving projects or other projects.

Many local governments attract enterprises to invest in LED, introduced a series of preferential policies, and to local investment in order to get government support for LED enterprise is not in the minority, only LED enterprises in the local production to meet the local government to support the U.S. is not the situation is not uncommon, and many LED projects the project became "unfinished".

At the same time, at present, many local government practices is required to see the machine operation ability of the enterprise to support corporate commitment, so many companies are forced to support power production, lead to high water pressure on the stock. In order to alleviate the pressure on the stock, enterprises begin to sale prices, so there is no profit, resulting in a loss; there are some enterprises in order to alleviate the pressure on the stock, the product sale out, resulting in huge accounts receivable, increase the financial risk of enterprise.

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