Research and Analysis of China's LED Lighting Industry Policy

Semiconductor lighting (LED lighting) is a new generation of cold light source developed in the 1990s. It has the unparalleled advantages of traditional light sources: energy conservation, environmental protection (excluding harmful substances such as mercury), and long life (50,000 hours). Reduced maintenance costs, better lighting quality, improved lighting visuals and safety make LED technology more and more used in many infrastructure constructions.

The energy crisis caused by human modernization warns us that energy conservation and environmental protection cannot be delayed, and the development and utilization of resources requires sustainable development. Since 2003, most of the country has experienced a new round of power shortages. The power shortage has contributed to the development of electricity, but it has also triggered our thinking about alternative energy and new energy.

China's current energy is mainly from thermal power generation, while thermal power generation uses oil and coal. As the price of oil continues to soar, the cost of power generation increases, and coal combustion produces a large amount of carbon dioxide, causing a greenhouse effect. In order to solve the energy problem, China mainly starts in two directions: developing new energy and energy conservation. The goal is to provide 15%-30% of energy demand in 2010-2012, while China's lighting consumes about the total electricity. One-sixth of the consumption, such as the current one-third of the domestic incandescent lamps replaced by LEDs, can save the country every year the annual power generation of the Three Gorges Project.

The development of LED lighting is in line with China's industrial development strategy. China attaches great importance to the development of the semiconductor industry and has successively issued a series of policies to promote the development of related industries:

In June 2003, the Ministry of Science and Technology, the Ministry of Information Industry, the Ministry of Education, the Ministry of Construction, the Chinese Academy of Sciences, the Light Industry Federation and other units set up a national semiconductor lighting project coordination leading group to urgently launch the national semiconductor lighting project.

At the beginning of 2006, the State Council issued the “National Medium- and Long-Term Science and Technology Development Plan”. High-efficiency, energy-saving and long-life semiconductor lighting products were listed as the first priority theme (industrial energy saving) in the first key area (energy) of medium and long-term planning. It has caused widespread concern at home and abroad.

In July 2006, the “Outline of the Eleventh Five-Year Urban Green Lighting Project” announced by the Ministry of Construction clearly stated that it should achieve the goal of reducing the energy consumption per unit of GDP by 20%, emphasizing the need to implement the requirements of resource conservation and environmental protection. Low-input, high-output, low-energy, low-emission, recyclable, sustainable national economic system and resource-saving, environment-friendly society, with green lighting – in utilities, hotels, commercial buildings, office buildings, and homes The promotion of high-efficiency power-saving lighting systems is listed as one of the top ten energy-saving projects.

In October 2006, the National Eleventh Five-Year Plan 863 Program for Semiconductor Lighting Project was officially launched.

In 2007, led by the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the Ministry of Information Industry, the State Administration of Taxation and other ministries and commissions began drafting "Several Policies on Further Encouraging the Development of the Software Industry and the Integrated Circuit Industry," a new semiconductor policy that was widely concerned by the industry. The new semiconductor industry support policy includes five-five-five-half corporate income tax incentives, research and development tax cuts (using credit and tax cuts), and semiconductor fixed-capital equipment tax exemption and special fund support for integrated circuit design.

In April 2007, in order to support the development of LED and solar photovoltaic industry, Fujian Province issued the “Implementation Opinions on Promoting the Development of LED and Solar Photovoltaic Industry in Fujian Province (2007-2010)”, which is the first province in China to introduce such policies. Fujian Province has also started the construction of a number of LED and photovoltaic industry public technology service platforms, including LED and photovoltaic electronic test platforms, LED and photovoltaic application product design platforms.

In July 2007, the General Office of the State Council issued the “Notice on Establishing a Government System for Compulsory Purchasing of Energy-Saving Products” (Guo Ban Fa [2007] No. 51), clearly stating that government agencies at all levels use fiscal funds for government procurement activities. Under the premise that the technical and service indicators meet the procurement requirements, it is necessary to preferentially purchase energy-saving products, and implement mandatory procurement for products that meet the requirements for energy-saving effects and performance.

In August 2007, the Ministry of Construction ordered that all cities should no longer use multi-light decorative garden lights in urban main roads. It is strictly forbidden to use powerful searchlights, high-power floodlights, large-area neon lights, color bubbles, and melons. High-brightness and high-energy lamps such as lamps.

On September 10, 2007, the Ministry of Construction announced the “Outline of Green Lighting Project Planning for the Eleventh Five-Year Plan”. According to the plan, China will vigorously promote urban green lighting in the next five years. Based on the end of 2005, the annual urban lighting power saving target will be 5%. By 2010, the application rate of energy-efficient lamps in urban lighting will reach more than 85%.

In November 2007, the State Council issued a document stipulating that from 2008 onwards, Chinese local provincial officials will begin to submit energy-saving answers to the central government. If the transcript fails to pass the exam, they will face accountability and a veto.

On November 26, 2007, Vice Minister of Finance Zhang Shaochun said at the National Financial Energy Conservation and Emission Reduction Work Conference held on the 26th that the central government allocated 23.5 billion yuan to support energy conservation and emission reduction.

On November 29, 2007, Premier Wen Jiabao of the State Council delivered a keynote speech at the China-EU Business Summit on the 28th. It is estimated that China's investment in energy conservation and environmental protection will reach 300 billion US dollars in the next five years, accounting for 30% of the world market.

On January 10, 2008, the Ministry of Finance and the National Development and Reform Commission jointly issued the Interim Measures for the Administration of Financial Subsidy Funds for Efficient Lighting Products Promotion (Cai Jian [2007] No. 1027). The National Development and Reform Commission and the Ministry of Finance will approve the promotion of financial subsidies for efficient lighting products. The provincial energy conservation authorities will work with the financial departments to formulate specific implementation plans, organize the winning enterprises to implement the promotion tasks, and ensure the implementation of financial subsidies during the 11th Five-Year Plan period. Promote 150 million high-efficiency lighting products, saving 29 billion kWh of electricity and reducing carbon dioxide emissions by 29 million tons.

In April 2008, the Ministry of Finance and the National Development and Reform Commission convened a national conference on the promotion of high-efficiency lighting products. The national financial subsidy for energy-saving lamps was officially launched. In the past year, the promotion plans for energy-saving lamps for office lighting in several major cities in China have progressed steadily, and LED lighting for urban and rural households is progressing steadily.

In October 2008, China launched the Energy Conservation Regulations for Public Institutions, requiring government agencies at all levels to incorporate energy-saving products and equipment into the government's centralized procurement catalogue and strictly monitor energy consumption. At the same time, the regulations on energy conservation for civil buildings are also promulgated, stipulating that the construction unit should select suitable renewable energy sources for heating, cooling, lighting and hot water supply. It is precisely because of the implementation of these two regulations that the local government will provide relevant sources of energy-saving products such as LEDs. In 2009, government units at all levels will implement various energy-saving policies and purchase a large number of related energy-saving products. Shanghai is expected in 2010. World Expo should follow the Olympics and set off another wave of demand for LEDs.

On November 5, 2008, the State Council executive meeting identified ten measures to further promote economic growth, and used 4 trillion yuan to finance domestic demand. The huge infrastructure construction project has led LED lighting companies to take advantage of this rare development opportunity.

On November 25, 2008, Li Xinghua, deputy director of the Planning Department of the Ministry of Transport, said at the regular press conference of the Ministry of Transport that in 2009, the transportation infrastructure investment of the Ministry of Transport will strive to reach 1 trillion.

The investment direction includes not only highways, national and provincial trunk lines, but also rural roads. It will also include the construction of ancillary facilities such as coastal ports, inland river ports and transportation hubs. Among the total investment of 1 trillion yuan, it is estimated that the investment of expressways will reach 400-500 billion yuan, and the rural roads will reach 200 billion yuan. Under the investment of the Ministry of Transport, LED lighting enterprises are facing good development opportunities.

On December 5, 2008, Wan Gang, vice chairman of the National Committee of the Chinese People's Political Consultative Conference and Minister of Science and Technology, at the awarding ceremony and work symposium of the National Sustainable Development Advanced Demonstration Zone, pointed out that this year, in the promotion of science and technology to promote domestic demand and promote economic growth, the Ministry of Science and Technology Some specific measures have been proposed and begun to be implemented. Such as energy conservation and emission reduction, the Ministry of Science and Technology has launched a demonstration plan for ten cities and ten cities and ten thousand, to promote the application of new energy vehicles and LED (semiconductor lighting) energy-saving street lamps; and new technologies and new fields in the fields of steel, chemicals and electric power. The promotion of the method has been highly valued by the State Council and strongly supported by relevant departments. We will also find ways to support innovation, from the experimental application of new technologies, to find a combination of economic and social development, and adopt post-subsidy and post-reward methods to support innovative practices in the experimental area.

In December 2008, the National Development and Reform Commission of China, in order to accelerate the promotion of energy conservation and emission reduction, phase out incandescent lamps, and accelerate the promotion of energy-saving lamps, the Development and Reform Commission has launched the "China's phase-out of incandescent lamps, speeding up the promotion of energy-saving lamps" The energy conservation work was further implemented.

On December 11, 2008, the Guangdong Province High-power LED Street Light Demonstration Promotion Conference was jointly held by the Guangdong Provincial Department of Science and Technology, the Construction Department and the Dongguan Municipal People's Government. In Guangdong Province, the province implemented a demonstration of 100,000 high-power LED street lights. The project was officially launched. According to the plan, next year, Guangdong Province will build a demonstration project for LED streetlights with a total mileage of 1,500 kilometers and a scale of about 100,000 baht in Guangzhou, Dongguan, Foshan, Zhongshan, Zhaoqing and Shantou. Among them, Dongguan City will transform 22100 street lamps into LED street lamps from December 2008 to December 2009.

At the end of 2008, China's LED lighting national standard formulation work has made great progress. The National Lighting Standardization Committee has 12 standards for LED lighting passed the basic certification. The LED lighting standard working group of the Ministry of Industry and Information Technology has passed 7 basic LED standards. Validation, if the progress is smooth, these standards will be promulgated and implemented in 2009 after further review and approval by the relevant departments.

In January 2009, the draft three-year revitalization plan for light industry was submitted. In the next three years, the light industry revitalization will focus on the revitalization of food, household appliances, paper, plastics, leather, hardware, batteries, lighting appliances, washing, light industry equipment and other industries. Key brand companies in other industries. As the focus of revitalization, lighting appliances once again attracted the attention of the industry and the hope of igniting the LED lighting industry.

On February 6, 2009, Shenzhen Mayor Xu Zongheng presided over the 248th executive meeting of the 4th Municipal Government, researched and reviewed and passed the "Shenzhen LED Industry Development Plan (2009-2015)" and "Shenzhen City Promotion and Efficiency". "Energy-saving LED lighting product demonstration project implementation plan", "Shenzhen LED industry public technology service platform construction plan", "Some measures to promote the development of semiconductor lighting industry", "On the bright LED industry gathering park planning research and related implementation recommendations", "LED International Trading Purchasing Center Preparation Work Plan" and a series of policy documents supporting the development of the LED industry to fully support the development of the LED industry.

In April 2009, the Guangdong Provincial Bureau of Quality and Technical Supervision was jointly announced by Dongguan Qinshang Optoelectronics Co., Ltd., Tsinghua University, Dongguan Quality Measurement Supervision and Inspection Institute, South China University of Technology, Guangdong Lighting Association and other 35 companies and related units. The draft "Guangdong Province LED Street Light Local Standards" will be officially implemented in July 2009. The "Guangdong Province LED Street Light Local Standards" is also the first local industry standard for LED street lamps in China.

On April 28, 2009, the Ministry of Science and Technology officially released in Tianjin, Shijiazhuang City, Hebei Province, Baoding City, Hebei Province, Dalian City, Liaoning Province, Heilongjiang Province, in a reply to the agreement on the implementation of the pilot project for the ten-city semiconductor lighting application project. Harbin City, Shanghai, Yangzhou City, Jiangsu Province, Ningbo City, Zhejiang Province, Hangzhou City, Fujian Province, Xiamen City, Fujian Province, Fuzhou City, Fujian Province, Nanchang City, Jiangxi Province, Weifang City, Shandong Province, Zhengzhou City, Henan Province, Wuhan, Hubei Province The city, the Shenzhen City of Guangdong Province, Dongguan City of Guangdong Province, Chengdu City of Sichuan Province, Mianyang City of Sichuan Province, Chongqing City, and Xi'an City of Shaanxi Province carried out pilot projects for semiconductor lighting application engineering (hereinafter referred to as the “Ten Cities and Ten Thousand Cities”).

Environmental issues are becoming more and more prominent, and China continues to promote energy-saving policies. China expects to invest RMB 4 trillion to stimulate the economy by the end of 2010, among which LED (light-emitting diode) industry will benefit, and China will also hold Shanghai World Expo, Guangzhou Asian Games, Shandong. The National Games, Shenzhen Universiade, LED street lighting landscape lighting and large billboard projects required for these large-scale events will be tendered one after another, which has an incentive effect on the LED industry prospects.

The development of LED lighting has good social benefits and broad market prospects. It is estimated that by 2010, the output value of China's semiconductor lighting and related industries will reach 150 billion yuan. The application of LED lighting will save 200 billion kWh of electricity for China. The national industrial policy and the successive legal plans all reflect the strategic thinking of developing circular economy and promoting the development of green energy-saving lighting products.

In addition to energy saving, the biggest advantage of LED lighting is that it does not contain harmful metal substances such as mercury. Instead of traditional lighting, it can greatly reduce the pollution of mercury and lead. For example, in the case of backlighting, global PC shipments are expected to reach 296 million units in 2008 (IDC predicts). If LEDs replace half of the backlight, one CCFL per unit (cold cathode lamp), each Calculated by 5mg of mercury, it will reduce mercury pollution by 740kg, greatly reducing environmental pollution.

In summary, in the field of lighting, LED applications will become the third lighting revolution after the open flame and incandescent lamps with its green and energy-saving performance.

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