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A year ago, China's LED industry appeared to be problematic. Hundreds of factories built with huge subsidies from state-owned banks and local governments only started half of the production capacity. The stock price of LED manufacturers plummeted. Nowadays, with the surge in demand, Chinese manufacturers suddenly find their factories running at full speed, and they are faster and cheaper than their global competitors. Due to price advantages, China is stealing market share from top producers in the US, Europe and Japan.
Michael, a member of the US-China Economic and Security Review Board. Wither said that the LED lighting industry may become the next solar and wind energy industry, and the United States will be defeated because it cannot cope with the Chinese government's subsidies and the bank's low-interest loan policy. But LED is a more complicated story. For example, this industry is highly fragmented. Chinese manufacturers are the most powerful in low-power LED products, mainly for TV and mobile phone backlights. Western companies have more market share in high-power equipment and have greater profits.
Alice, a lighting expert at IHS Technologies, a global consulting firm. Tao estimates that the extremely low price may cause Chinese companies to occupy about 30 global market share, ahead of Japan, South Korea, Germany and the United States. But as Chinese products flood the market like floods, the quality is worrying. Buyers of a large number of LED products warn that low-end products sometimes burn out in less than a year and emit strange colors. Australian businessman Benjamin using LED lights to decorate outdoor corporate identity. Carlson said that the US LED products are 1/3 more expensive than China's, but in any case he has to switch to American goods.
Like many other fast-growing Chinese industries, LEDs have environmental issues. Despite this, the industry is still part of China's efforts to promote clean energy, creating tens of thousands of rewarding jobs for young Chinese university graduates.
Now China is emulating the United States and encouraging more energy-efficient lighting products in China. But experts say that there are too many Chinese companies in this market and the price competition is fierce. Most companies are not profitable and it is difficult to survive. Even if Chinese manufacturers gain global market share, the problem will only increase. Li Junfeng, a senior energy planner in China, said that fierce competition will force many companies to cut corners. The problem is that there are too many manufacturers with low quality.
Chinese LED companies grab global market share
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