Mainland China’s State Council a few days ago issued an official document stating that even though its subsidy policy to promote regional economic development has encouraged investment and industry development, it has also disturbed the market order. It has also impacted the effectiveness of overall national policies and led to trade friction. Consequently, it has stipulated that all levels of local government will by March of next year submit an improvement program to the Ministry of Finance.

A Taiwanese LED business professional stated that previously, China’s official large-scale subsidies of local LED companies, led to a supply and demand imbalance. As soon as China cancels LED subsidies, local LED manufacturers will be unable to fend for themselves and be unable to continue killing off the competition.

LED professionals believe that after China officially and comprehensively discontinues central and local LED subsidies, it will help the market to naturally weed out companies with inferior technology.

Furthermore, with China’s policy adjustments and continued growth in overall global demand, the LED market will become increasingly sound. This includes growth in the lighting market and an increase in the use of automobiles and high-end cellphones. The LED industry is also expected to thrive next year.