About 4,000 companies in China are producing LED high bay light, or light emitting diodes, tempted by tax breaks, subsidies and offers of cheap land for factories. Now they are locked in intense competition that has halved prices over the past three years.
Just as over-investment and sagging exports dragged down Beijing's solar panel and wind turbine champions, China's much-hyped LED lighting sector, the largest in the world, is now facing a drastic shake-up.
"Everyone is making LEDs these days. The industry is a mess," Irving Pun, global marketing director of LED maker Civilight Shenzhen Semiconductor Lighting Co Ltd said.
"This is a typical problem associated with China," he added. "Whenever a new industry is introduced here, a huge swarm of speculators will descend upon it and quickly turn it upside down."
Civilight's multi-story LED light factory in Shenzhen is surrounded by dozens of rival manufacturers. In 2006, when Pun and his colleagues set up the company, they were pioneers in an industry the central government was determined to promote as part of China's drive for green technology.
Just as over-investment and sagging exports dragged down Beijing's solar panel and wind turbine champions, China's much-hyped LED lighting sector, the largest in the world, is now facing a drastic shake-up.
"Everyone is making LEDs these days. The industry is a mess," Irving Pun, global marketing director of LED maker Civilight Shenzhen Semiconductor Lighting Co Ltd said.
"This is a typical problem associated with China," he added. "Whenever a new industry is introduced here, a huge swarm of speculators will descend upon it and quickly turn it upside down."
Civilight's multi-story LED light factory in Shenzhen is surrounded by dozens of rival manufacturers. In 2006, when Pun and his colleagues set up the company, they were pioneers in an industry the central government was determined to promote as part of China's drive for green technology.
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