Government to support the LED industry lead to overcapacity

Now, when the development of new industries the government has a problem: there are no state only concerned about the state and local governments are not only concerned about the local industry. Government officials do not go to detailed understanding the LED lights market volatility, as long as the chain and made the whole, the data is very beautiful, what kinds of business is not tube. This should avoid falling into the errors.

Industry sources pointed out that the local government's blind support for the LED industry is leading to overcapacity in the industrial structure of one of the reasons. But there are also pointed out that the current plight of the LED industry due to sluggish overseas markets, but also the inevitable growth of new industries.

2008 financial crisis comes, China LED industry can still bucked the market trend, why is there this year on the decline it?

Write-off China exports fell, but the domestic commercial and domestic market is not open, and the investment boom uncoordinated.
Simply put, the plight of this year from domestic LED "front block," and the rear "to force too much." "The front block of the" downturn is that foreign markets this year, orders dropped significantly. This had forced the transfer of products to the domestic market, but the vast majority of LED products currently dependent on exports, the domestic market also needs to stay in municipal engineering stage, commercial and residential lighting markets did not open. This means that the LED products sold well.

Back "to the excessive force" refers to China LED market overheated investment, excessive production of products and uneven. Five years ago, to do the LED business still remain in the double digits, to get involved in more than 200 last year, and now has more than 300, 80% of Foshan traditional business transformation into the LED bulbs industry. Such an action would give a product backlog, the illusion of excess capacity.