The current Chinese government has gone from quantitative easing monetary policies to tightening monetary policies, and has been scaling down on large scale government projects. It has been over 5 years since China’s LED subsidiary policies were implemented, and it is about time market regulations were formed.
Both analysts noted the reduction of subsidiaries in the LED industry would benefit the LED market, as uncompetitive LED players are out of the industry. This perspective was also shared by other industry players that believed the policies will aid the Chinese LED market to eliminate manufacturers without the technology capacity.
Since the Central Government statement mentioned the central government will be inspecting and reviewing subsidiary projects in March 2015, to acquire subsidies some LED light manufacturers will quickly expand before the deadline. The new subsidiary regulations will raise the bar for future subsidiary applications, and prevent potential new makers from entering the market.