Excitation Test Nie Pengxiang: How far is the impact of the new US anti-globalization policy on LED companies?

"Trump is elected to the US president. Many people will find it incredible. In the eyes of the Chinese, it is even more ridiculous. How can a person with a big mouth be elected as president? Then, after he takes office, he will give the lighting industry to China. What are the impacts? I believe this is a concern for everyone.” Nie Pengxiang (Paul Nie), the president of the Incentive Testing, mentioned in the closing ceremony of the “Highlights of LED” titled by Mulinsen at the 2016 High-tech LED Annual Meeting.

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Nie Pengxiang, President of Incentive Testing

As we all know, the US lighting market is very large. Although the United States has only 300 million people, the number of lighting used by Americans is very large each year. It is also a market with a large export volume of LED lighting products in China.

However, as far as the current lighting market in the United States is concerned, the LED penetration rate of local lighting products is very low, which is a big gap compared with the Chinese lighting industry. Indeed, LED lighting can be seen anywhere in China, but it is rarely seen in the United States.

The trade between China and the United States is very large, and the attitude of policy makers to China determines the relationship between China and the United States. All along, the relationship between China and the United States is the United States to buy goods, China's goods, after Trump took office, what will be the impact between buyers and sellers?

In fact, the layout of the LED industry in the United States has basically not changed much since 2008. In the entire LED value chain, production is a very weak link.

In the channel, the United States has always been an oligarchy, Cree, Philips, TCP, GE, etc. occupy the main channel. The immediate challenge that Trump brought after he took office was that he called for American goods, hired Americans, completed manufacturing work in the United States, and created high trade barriers.

I believe that the impact of this decision on the sales channels of traditional consumer lighting products is very limited. In the retail stores, LED products will not be affected. However, when entering the public procurement channel, there will be more stringent restrictions, and market supervision will certainly be strengthened.

At present, the demand for parts and components in the United States is increasing. I have also found in contact with some domestic listed companies that their demand for entering the US market has gradually changed from buying products to buying companies. This has become a quick entry. The way the US local market is.

Of course, being able to invest and build a plant in the United States is something that every lighting manufacturer that wants to succeed in the United States is considering.

Regarding President Kiwi, I think there are many unpredictable ones. Will Trump be impeached and will not step down before he is on stage? This is still unknown.

Some conspiracy theories that Obama made a series of policies before he stepped down were to prepare for the impeachment of Trump, and there were some unexpected incidents.

However, there are some points that are clear. For example, the determination of the United States to return to the manufacturing powers is very firm and will definitely go on; the determination of the United States to return to the manufacturing powers is very determined and will definitely go on.

Therefore, I believe that for everyone, this is an opportunity and a challenge.

Finally, the Incentive Testing is a testing and certification organization with laboratories in China and the United States. We provide a wide range of testing, certification and market access services. We can help you to enter the North American market to provide some solutions.


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