On March 17, the Outline of the Thirteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China (hereinafter referred to as the “Outlineâ€) was officially released. The outline points out that it will focus on the development of environmental technology equipment. Relevant government departments will introduce various preferential and subsidy policies to encourage the development of energy-saving and environmental protection industries. LED lighting products that can play an important role in energy conservation and environmental protection will be valued by the government and the market. It is reported that the country will transfer subsidies from LED packaging to LED lighting, and LED packaging companies will be excluded from preferential policies.
So, if the subsidy policy is really cancelled, what impact will it have on LED companies and industries?
Is it a good thing to cancel the subsidy?
"It will be cancelled sooner or later." Xu Changqing, a packaging engineer at Ruifeng Optoelectronics Co., Ltd., explained his opinion in a very concise sentence about the possibility that the subsidy is likely to be cancelled.
Wu Zhaoping, manager of Zhongke Ruichuang Optoelectronics Technology Co., Ltd. further explained: "Because the cost of LEDs is relatively high, the cost of LEDs and equipments has fallen to a certain extent. Relatively speaking, it does not require national Auxiliary push."
The industry participants interviewed said that the cancellation of subsidies can make the industry more standardized and promote the sound development of the industry.
Liu Zongyuan, deputy general manager of Guoxing Optoelectronics Co., Ltd. put forward his point of view: "I don't think it is suitable for subsidizing enterprises. It is better to subsidize end customers. Whoever buys this product benefits, this is to cultivate the market; subsidizing enterprises may encourage enterprises. Blind expansion will lead to bad competition in this market."
Or into a business transformation opportunity?
For enterprises, how to deal with the market competition after the subsidy cancellation, how to maintain the development? Guan Guangcang, director of Zhejiang Sunshine Lighting Group, throws two words: "Innovation!"
Manager Wu of Zhongke Ruichuang Optoelectronics Technology Co., Ltd. pays attention to the strength, and the strength of the enterprise itself can cope with the competition in the market.
As we all know, the state subsidies are not “uniformâ€, but it is mainly targeted at some large enterprises. Does the subsidy cancellation have any impact on enterprises that have not received subsidies?
Liu Zong of Guoxing Optoelectronics said: "I think there should be no impact. We seem to have no subsidies. Our national star has not received local subsidies, so it has no effect on us."
Xu Changqing, packaging engineer of Ruifeng Optoelectronics, put forward different views: "It may aggravate more competition. If there is a subsidy (a company), he does not have to fight for a market that does not receive subsidies. With subsidies, he can Give up some markets, because after all, there are subsidies and there is a certain profit."
Return to fair competition?
“At the beginning of technology improvement and market cultivation, government subsidies can be understood. As the LED technology matures, the market recognizes it, and the subsidy is of little significance. After the subsidy policy is abolished, the company will speak on its own strength.†The director of the Sunshine Lighting said so.
Director Deng Bin of Zhongshan Huayi Lighting Co., Ltd. said: "The market should be fair and should not be biased. The bias is when the country develops in the early stage of the industry. In order to promote some things, Some subsidies are biased, but in the long run, there will be a situation in which wealth is very rich, and in the end it is the kind of small enterprises. If the subsidy policy is abolished, large and small enterprises in the market can compete equally."
“Everything is better for the law of the market.†Wu, the manager of Zhongke Ruichuang Optoelectronics Technology Co., Ltd., also believes that it will be more fair to cancel the subsidy.
Conclusion: Enhance your strength to achieve long-term quality development
When any industry develops to a certain stage, it should be separated from the outside support to go to market-oriented competition independently. Adhere to market orientation, follow market rules, and market economy should act according to market rules.
And regardless of whether the subsidy policy will be abolished, maintaining its own strong strength is an important weight in market competition. Recently, some people’s deputies put forward the view that “the government must not only add icing on the cake, but also pay for it in the snow.†However, for enterprises, it is better to have the strength to regard subsidies as a icing on the cake, rather than a charity in the snow, or a policy that may be cancelled at any time. It may cause turmoil in the enterprise.
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