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According to the Guangdong Provincial Commission for Discipline Inspection, Li Xinghua, director of the Guangdong Provincial Department of Science and Technology, is under investigation for serious violations. As soon as this news came out, the entire LED industry was hotly discussing the matter. Some insiders pointed out that there will be a larger earthquake later, and the involvement will be broader. Some people even think that the plan to popularize LED public lighting in Guangdong Province will be affected.
On July 29th, many LED industry insiders interviewed by China Business News believe that the Guangdong government's active promotion has contributed to the development of the LED industry, but there is indeed an opaque subsidy in the LED industry. Waiting for chaos.
Sharpen the head and take the project
Two days before the news of the investigation, Li Xinghua also led the team to participate in the live broadcast of Guangdong's "Minsheng Hotline" and met face-to-face with the Guangdong Provincial Government.
In this program, the issue of science and technology project policy subsidies and research funding has become a focus. A short video of the show shows that the general manager of a technology company said that due to policy support, the LED market has indeed achieved rapid growth. But he believes that this growth is unhealthy. He said that many LED companies are now focusing on the project in order to compete for special subsidies, and almost abandoned the research and development of technology, which has become a common phenomenon in the industry.
In recent years, Guangdong has actively introduced policies to support the development of the LED industry. During the “Twelfth Five-Year Plan†period, the Guangdong Provincial Government invested 450 million yuan each year to set up special funds for the development of the LED industry. The “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province†released in May 2012 shows that the scale of LED industry in Guangdong Province will reach 500 billion yuan at the end of the “Twelfth Five-Year Plan†period, which proposes that Guangdong will take the lead in the field of public lighting. LED lighting products are widely promoted in the field of lighting engineering, such as public places, government agencies, state-owned enterprises and institutions, and other financial or state-owned capital investment projects.
These policies have undoubtedly played a positive role in promoting the development of the LED industry. However, in order to gain the favor of the policy, LED companies have tried their best to solve all kinds of problems, and many of them have gone through the "small roads."
A senior person in the LED industry told this reporter that some companies do have a mind to get subsidies. After all, there are not many companies that can be obtained. There are more than 6,000 LED companies in Guangdong, and only about 2% to 3% can get subsidies, most of which are listed companies and state-owned enterprises.
Why are subsidies given to large companies? The LED industry veteran said that from the government's point of view, he hopes that the stronger the stronger, and from the industry itself, this subsidy will not exist for a long time, government subsidies may not be a good thing for the industry itself. Sometimes it will affect the market to play its normal detoxification function.
There are many examples of this around him. Some enterprise projects are doing very poorly, but with good relations with the government, they will be able to get tens of millions of government subsidies. In fact, the technology of this company has been eliminated by the market, and there is no way to promote it in the industry. Open.
"In order to get the project and get a good relationship with the government, there will inevitably be some corruption and backdoors." The industry veteran said that some government officials are not professional, and a good technology can't be seen. Just look at the company's public relations skills.
The person in charge of a Taiwan-funded LED lighting company in Dongguan revealed to the newspaper that such industry chaos is indeed widespread. Some companies get news of these policy subsidies from certain special channels, even faster than senior practitioners.
"Many times the government does not specifically inform a certain preferential policy, for example, we have been doing it on Alibaba, but it is only until this year that the government has subsidies in this piece."
The person in charge said that some companies that can get subsidies are even empty shells. They only need to provide some documents that look professional and reliable, so they can get the money. In fact, companies that are really focused on doing this industry may not know much about these subsidies.
This company did not develop the domestic market until this year because it felt that "domestic sales are very complicated." Even if they do domestic sales, they are not willing to do government projects. "Because you want these projects to be very tricky, there will be some hidden rules. We don't want to deal directly with the government."
Influence or limited
Is it true that some industry insiders have said that Li Xinghua’s fall will trigger an earthquake in the LED industry?
The above-mentioned LED industry veterans said that there will definitely be an impact, but the impact may not be so large. Because the Science and Technology Department is only the executive department, it is the higher-level leaders in the province that really dominate the industry.
"Because of this matter, enterprises and local science and technology bureaus may have some wait-and-see attitudes that will affect the progress of some projects, but they will not stop. If the provincial policies have not changed, the newly appointed officials of the Science and Technology Department will continue to implement them." He said.
The person in charge of an LED company in Zhuhai also sent a message to Weibo, arguing that Li Xinghua was most affected by the investigation of LED street lamps. In the past two years, Guangdong has vigorously promoted energy-saving renovation of street lamps and public places, and vigorously promoted contract energy management mode ( EMC), once made Guangdong LED enterprises have a good time.
The above-mentioned LED industry veterans said that the Chinese LED industry has always lacked the power of research and development, which is the reason for the entire environment. The development of a technology has not been mastered by other domestic enterprises for two months. The protection of patents is not strict. If the lawsuit wins, it will not necessarily get the money. At present, many accessories have been standardized, and the parts can be produced. A good product.
He said that government projects are also limited. Some projects, such as street lamps, squares, track lighting, government buildings, etc., will play a role in promoting, but not all companies are coming to government projects. Many companies are focused on commercial lighting. Basically, government projects play a role in giving everyone confidence. “Even if there is no government project, everyone will not be more enthusiastic about R&D.â€
As for the three-year plan to popularize LED public lighting in Guangdong, he believes that most of the technical problems are now solved, and the product quality has basically stabilized. So as long as the government pushes, it is not a problem.
A staff member of the Guangdong Science and Technology Department's subordinate unit told this newspaper that Li Xinghua gave him the impression that the gas field is strong, and the LED industry is Li Xinghua personally.
It can be seen from Li Xinghua's resume that he is from Meizhou, Guangdong Province, and joined the work in 1974. In 2007, he served as the director of the Science and Technology Department of Guangdong Province and secretary of the party group. After the above-mentioned "Minsheng Hotline" program, he also responded to the previous Guangzhou Science and Technology System Corruption Case, saying that starting from 2014, he will open the ranking of major projects with over one million yuan of funds in the Science and Technology Department.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.) 
Guangdong Science and Technology Director Li Xinghua "falling horse" or triggering "earthquake" in LED industry
How close is a local official to an industry? You may not be able to imagine.