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Different Local More Lighting Manufacturers Enter the LED Industry as CFL Subsidies End in China

The transition of traditional lighting manufacturers into LED is speeding up as Compound Fluorescent Lamps (CFL) subsidies come to an end in China, according to a China Business Journal report.

CFL subsidies released in early 2008 will be terminated at the end of 2014, bringing the lighting industry’s new round of competition to the LED industry.

“LED lighting industry is quickly developing,” said Lv Fangxiang, deputy director of China’s Phasing Out of Incandescent Lamps and Energy Saving Lights Promotion (PILESLAMP) Project. “LEDs already have strong competitive advantages in pricing and technology, and will become the future “star” product in the lighting industry.”

The project is researching LED promotion and product policies, and related government subsidies. Even before the project’s involvement, many local governments were already issuing subsidies to stimulate the industry. These local governments are vying LED market’s long term market value potential of generating billions of RMB.

As China’s CFL subsidies come to an end this year, conventional lighting manufacturers are quickly entering the LED industry, which will impact the industry that has mainly be led by SMEs.