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The Government Subsidy for LED Garage Light May Damage Market Fairness


One reason for the rapid development of LED garage light industry is inevitably the strong support and guidance from the local government. In the fierce competition of LED Lights market, many local governments have provided abundant support and subsidy for enterprise procurement to effectively accelerate the industrial integration.

However in the long run, there are certain disadvantages for the LED Lighting enterprises under subsidy of governments. America once sued China to WTO for the Chinese exporting subsidy because they think the high subsidy enabled Chinese enterprises with competitive advantages which is unfair for the American enterprises and market. The trade frictions were getting fierce because of that. From another aspect, some enterprises may get too independent on government subsidy and they use government subsidy to cover up the actual operation status of the company.

All in all, everything has its pros and cons. It depends on the company how to use the subsidy. With good utilization, the companies can improve the innovation and production ability and increase inner value of lamp s products. Otherwise they might be flooded by the tide of LED lighting industry integration.


Source: http://www.elitesemicon.com/newsone.asp?t1=1019