Guangdong LED exports were "encircled"

A few days ago, the Guangdong Provincial Quality Supervision Bureau continuously received notifications from the European Union, the United States, Chile and other countries on the TBT (Technical Trade Barrier Agreement) to raise the threshold for the import of LED lamps. It is understood that only the improvement of the EU and the US energy efficiency index and the setting of inspection procedures will increase the cost of LED LED enterprises in Guangdong by more than 4 billion yuan, and greatly increase the production cost of LED lighting products entering the European and American markets. A "encirclement and suppression" for China's LED lighting export products is kicking off.

"The threshold of the European and American markets has increased or caused a large number of small businesses to close down." The industry believes that for companies without technology and brand, LED processing has been difficult, and the improvement of this threshold may become the last straw to crush them.

A few days ago, the Guangdong Provincial Quality Supervision Bureau WTO/TBT Center has begun to take countermeasures.

Event LED export detection cost rises
Since the end of June, Shenzhen Vision Light Electronics has closed down, and negative news has once again hit the LED industry.

Recently, the Guangdong Provincial Quality Supervision Bureau has continuously received 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 EU's notification regulations require that only directional LED lamps and directional fluorescent lamps with an energy efficiency index of 0.2 or higher can enter the EU market in the future, which is 2.5 times higher than the previous energy efficiency index. Industry analysis pointed out that this index will directly lead to LED production costs increased by more than 20%, bringing LED losses to Guangdong LED companies more than 2 billion yuan.

In the United States, the LED and other test procedures for this report are also very demanding on the conformity assessment and market supervision and inspection procedures for LED lighting products, which will bring huge test cost to Chinese enterprises. "If the US notification requirements, the LED export enterprises in Guangdong Province will bring more than 2 billion yuan in additional costs, which will greatly weaken the competitiveness of the province's LED lighting products in the US market." Industry sources said.

Then, the Guangdong Provincial Quality Supervision Bureau WTO/TBT Center issued a report saying that Mexico will implement the 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 advantages and patent monopoly to set up high technical barriers to trade to protect the interests of their domestic LED companies. It is widely reported to countries ranging from developed countries in Europe and America to developing countries such as Chile and even the least developed countries such as Uganda.

The relevant person in charge of the Dongguan Semiconductor Lighting Industry Association told the reporter that as an emerging industry, the LED industry will have new standards and requirements almost every other time in recent years, but the improvement of European and American standards will undoubtedly make Dongguan enterprises have a large production cost. Rising, the pressure is increasing.

influences
Big fish calm, small fish out?


In fact, Europe and the United States has always been the main market for LED exports in Dongguan and even Guangdong Province. In 2011, the output value of the province's LED industry reached 150 billion yuan, accounting for 70% of the country and 50% of the world. The export value to European and American countries reached more than 34 billion yuan.

How will the “encirclement and suppression” from many countries and regions affect the LED industry in Dongguan? Peng Junzhong, director and general manager of the Lighting Division of Dongguan Huajianda Electronic Technology Co., Ltd. bluntly said: Under the background of the improvement of the threshold, some enterprises are inevitably closed down. "LED processing is currently difficult to do. The price of a point (lighting point) used to be 3 to 4 cents ago is only about 1 cent." He admitted.

Huang Mei, deputy general manager of Dongguan Keleide Digital Technology Co., Ltd., believes that the increase in the threshold of the European and American markets is a "double-edged sword." "There will definitely be some companies dumped, but for some large companies with technical strength and brand, this is a good news. The small enterprises that were originally exported are kept out of the door, leaving the market space to be able to reach Standard enterprises to fill.” She pointed out that among the larger LED enterprises in Dongguan, the proportion of domestic sales is relatively high, so the impact will be smaller than that in Shenzhen and other places.

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

response
Improve the testing level of production links

In the face of "encirclement and suppression", how can Dongguan LED enterprises respond? The reporter found that some of the larger LED companies in Dongguan have always been more cautious in opening up overseas markets, so this part of the company is more calm when faced with the increase in the threshold of Europe and the United States.

Ke Lei's approach is to use a long preparation period to run the export products, after thorough testing and long-term practical application, and then to the foreign market. “Now our export ratio is only 10%”, Huang Mei said that after many enterprises export products, various problems will occur, which will bring high maintenance costs, and after a long preparation period, they can avoid This large maintenance cost.

Dongguan Bangchen Photoelectric Co., Ltd. invested a large amount of funds in the first half of this year to establish six laboratories such as material testing and power supply testing, which greatly improved the company's engineering and research and development capabilities. Therefore, in the face of rising detection costs in foreign markets, the company has performed very calmly.

"However, for some export-oriented small businesses, there is no time and money to make adjustments." A Dongguan LED industry researcher believes that this part of the company may wish to switch to domestic sales, or to the emerging markets such as the Middle East. "Guangdong Province promotes the use of LED lighting products implementation plan" at the end of May this year, "Dongguan City promote the application of LED lighting products work program" also recently introduced, highlighting the government's determination to support LED domestic sales. However, he also said that if the domestic market cannot be included in the benchmark system, it will inevitably encounter the fate of being integrated by large enterprises; and the market entry threshold for emerging markets is also increasing.

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