In the report of National Audit Office in 2014, several led high bay companies had swindled government subsidies for more than ten million yuan by faking application material. Some industry insiders say “the government subsidy can at least feed the company for 3 years”. This means the huge attractiveness government subsidies have on LED Lights companies. It will lead to too much dependence on government subsidy and a neglect of the core for a company – products. If companies place too much value on government subsidy, it will lead to chaotic competition of led lamps products. The image of LED Lighting industry which is high tech and high class will be damaged and the market environment will also be affected.
It is understood that the current domestic LED lighting industry is not mature enough in the levels of pricing system, product specification, technical, industrial standard, and government policy. What’s more, the core technology of LED high bay comes from abroad. Once the core technology is blocked, it will be a catastrophe for the domestic industry. In this case, the kind and generous financial subsidy will eventually lead to excessive capacity and hamper the development of technology.