International lighting giants cost down has raised concerns in the industry that the lighting business has stagnated. But closer inspection of major lighting manufacturers recent slim down reflect their transition from traditional lighting manufacturers to LED lighting.
Perhaps one of the biggest news of 2014 is Chinese government decided to tighten local government subsidiaries given to LED manufacturers in the form of taxes or other development stimulating subsidies. The government statement wrote that some of these local subsidies have disturbed market order and affected macroeconomic policies, some even violated international trading agreement.
In future, all of the subsidies issued by local authorities are bound to submit to central government for approval. With the tightening of LED subsidies, the market is expected to return to norm in 2015, and some companies may benefit from rebounding LED price.