LED exports suffered a full "encirclement and suppression"

A "encirclement and suppression" for China's LED lighting export products is beginning. Recently, the Guangdong Provincial Bureau of Quality Supervision received consecutive TBT (Technical Trade Barriers Agreement) notifications on raising the threshold for the import of LED lamps in countries such as the European Union, the United States, and Chile. It is understood that only the EU and the United States to improve the energy efficiency index and the establishment of inspection procedures will increase the cost of LED companies in Guangdong more than 4 billion yuan, and greatly increase China's access to European and American markets, LED lighting products, production costs.

"Europe and the United States market barriers have increased or led to the collapse of a large number of small businesses." Insiders believe that for companies without technology and brand, LED processing has been difficult, this increase in the threshold or become the last straw to suppress them.

Recently, the Guangdong Provincial Bureau of Quality Supervision WTO/TBT Center has begun to take countermeasures.

Event LED export inspection costs rose Since the end of June Shenzhen Vision Optoelectronics failed, negative news hit the LED industry again.

Recently, the Guangdong Provincial Bureau of Quality Supervision received consecutive TBT notifications from the European Union, the United States, Chile, and other countries on raising the threshold for the import of LED lamps. The reporter learned that the European Union's notification regulations require that only directional LED lamps and directional fluorescent lamps with an energy efficiency index of more than 0.2 can enter the EU market in the future, which is a 2.5-fold increase over previous energy efficiency index requirements. Industry analysis pointed out that this index will directly lead to LED production costs increased by more than 20%, to Guangdong's LED companies to bring more than 2 billion loss.

In the United States, the notification of LED test procedures, the requirements of the LED lighting product conformity assessment, market supervision and inspection procedures are also very demanding, and will bring huge testing cost to Chinese enterprises. "If you press the US notification request, it will bring additional costs of more than 2 billion yuan to LED export enterprises in Guangdong Province, which will greatly weaken the competitiveness of LED lighting products in the US market in the US," the industry source said.

Immediately afterwards, the WTO/TBT Center of the Quality Supervision Bureau of Guangdong Province announced that Mexico will implement a new LED bulb energy efficiency standard on August 21.

According to Chen Quan, director of the WTO/TBT Center, recently, European and American countries have tried to use their technological superiority and patent monopoly to set up high trade technical barriers to protect the interests of their LED companies. The sources of the notifications are wide-ranging, with both developed countries in Europe and the United States, developing countries such as Chile, and even the least developed countries such as Uganda.

Dongguan City Semiconductor Lighting Industry Association, the person in charge told reporters that as an emerging industry, LED industry in recent years almost every time there will be new standards and requirements, but the increase in the European and American standards, will undoubtedly make the production costs of Dongguan enterprises As the pressure rises, the pressure increases.

Affect the fish calm, fish out?

In fact, Europe and the United States have always been the major markets for LED exports from Dongguan and even Guangdong. In 2011, the output value of the entire province's LED industry reached 150 billion yuan, accounting for about 70% of the country, 50% of the world, and exports to Europe and the United States amounted to more than 34 billion yuan.

What are the effects of "encirclement and suppression" from many countries and regions on the LED industry in Dongguan? Peng Junzhong, a director and general manager of the Lighting Division of Dongguan Huada Electronic Technology Co., Ltd., bluntly stated that under the background of the improvement of the threshold, the failure of some enterprises is inevitable. "LED processing is already difficult to do at present. The price of a point previously made (lighting point) was 3 to 4 cents. Now it is only about 1 cent." He said frankly.

Huang Mei, deputy chief of Dongguan City Science and Technology Co., Ltd., believes that the increase in the threshold of European and American markets is a "double-edged sword." “Surely some companies will be drained, but for some big companies with strong technical capabilities and brands, this is good news. The original small businesses that were exported are kept out of the door and the market space left for them needs to be able to reach Standard enterprises to fill in. "She pointed out that Dongguan, a larger LED companies, the proportion of domestic sales is relatively high, so the impact will be smaller than in Shenzhen and other places.

The person in charge of the Dongguan Semiconductor Lighting Industry Association told reporters that the quality of the products of some well-known enterprises in Dongguan has now been able to adapt to the high standards of Europe and the United States.

Respond to improve the level of production testing in the face of "encirclement and suppression", Dongguan LED how to deal with? The reporter found that some of the larger LED companies in Dongguan have always been more prudent in developing overseas markets, so this part of the company appears to be more comfortable in the face of rising European and American thresholds.

Corridor's approach is to blend in the export products through a long preparation period, and after comprehensive testing and practical application for a long time, push them to the foreign market. "Now we only have a 10% export ratio." Huang Mei said that after export of many products, there will be various problems, which will bring high maintenance costs, and after a long preparation period, it can be avoided. This large maintenance cost.

Dongguan Bangsen Optoelectronics Co., Ltd. invested heavily in the first half of this year to establish six laboratories for materials testing and power supply testing, which greatly improved the company's engineering and R&D capabilities. Therefore, in the face of rising costs of testing in foreign markets, the company is very calm.

"However, for some small export-oriented enterprises, there is no time and money to make adjustments." A Dongguan LED industry researchers believe that this part of the company may wish to switch to domestic sales, or to attack the Middle East and other emerging markets. "Guangdong Province to promote the use of LED lighting products implementation plan" was introduced at the end of May this year, "Dongguan City, promote the application of LED lighting products work program" has also been introduced recently, highlighting the government's determination to support domestic LED manufacturers. However, he also said that if companies cannot include a benchmarking system in the domestic market, they will inevitably face the fate of being integrated by large companies. The market access threshold for emerging markets is also rising.