Foreign lighting experts say Chinese LED companies are taking 30% of global market share
time：2017-07-29 11:40:00 browse：4177次
A year ago, China's LED industry appeared to be in trouble, with hundreds of factories built on huge subsidies from state-owned banks and local governments, running only half of their capacity. LED maker's share price plummeted. Now, as demand surges, Chinese manufacturers suddenly find their factories running at full speed, producing faster and cheaper prices than global competitors. Because of its price advantage, China is taking market share from the first-class manufacturers in the US, Europe and japan.
A member of the U.S. - China Economic and Security Review Commission, Michael Weisel said, "LED lighting industry will become the next solar energy and wind power industry, the United States will be unable to cope with the low interest loan policy for government subsidies and bank Chinese and defeated." But LED is a more complicated story. The industry, for example, is highly fragmented. Chinese manufacturers are most powerful in low power LED products, mainly for televisions, mobile phones, backlighting and so on. Western companies have more market share in high power equipment and have a larger profit.
Lighting expert Alice Tao global consulting firm IHS technology company estimates, a very low price may make Chinese enterprises occupy about 30% of the global market share, ahead of South Korea germany. But as Chinese products flood the market, the quality is worrying. Buyers of large LED products warn that low end products sometimes burn out in less than a year and make strange noises. Benjamin Carson, an Australian businessman who uses LED lights to decorate outdoor corporate logos, says LED products in the United States are more expensive than China's 1/3, but in any case he will switch to American goods.
Like many other fast growing Chinese industries, LED has environmental issues. Still, the industry remains part of China's efforts to promote clean energy, creating tens of thousands of lucrative jobs for young Chinese University graduates.
Today, China is following the United States to encourage more domestic use of energy-saving lighting products. But experts say there are too many Chinese companies in this market, and the price competition is very fierce. Most companies can not make a profit, it is difficult to continue to survive. Even if Chinese manufacturers gain global market share, the problem will only increase. "Fierce competition will force many companies to cut corners," says Li Junfeng, a senior energy policy planner in China. "The problem is that there are too many poor quality manufacturers."."
