A recent report by the National Audit Office showed that Anhui Power Saving Investment Co., Ltd.'s high-power LED green lighting project passed the false declaration of information and defrauded the central government's energy-saving key project investment subsidy of 9.9 million yuan. In addition, Guangdong Xuelaite Optoelectronics Technology Co., Ltd. defrauded 34.55 million yuan, Guangdong Dongguan 100% Technology Co., Ltd. cheated 232,000 yuan. A person in charge of sales of a LED company in Zhongshan revealed that "now, if you want to get a government project, each company must cross the sea and show its magical powers." Taking Guangdong as an example, during the “Twelfth Five-Year Plan” period, the provincial government invested 450 million yuan each year to set up a special fund for LED industry development, which will undoubtedly promote the development of the LED industry. However, in order to compete for this special fund, enterprises have not taken "all kinds of means." An industry insider who asked not to be named said that if you get government subsidies or projects, both hard power and soft power must be available, but soft power is more important than the two. "This is a critical time to test connections and government resources." The person said. Does LED really need such subsidies to save energy? The industry also has different opinions. Xin Waterfall, chief economist of Guangdong Radio and Television Group, said that under the same lighting intensity, LED street lights are actually no more energy efficient than high-pressure sodium lamps. In addition, the specifications of LED lamps of various manufacturers are very different at present, and once maintenance and replacement will encounter many problems. Because it is not completely standardized like a high pressure sodium lamp. Many people in the industry also believe that LEDs do save energy, but they are not necessarily environmentally friendly. Because the overall production process of LED lights can be quite energy intensive. If the energy used in the process of producing and recycling waste is calculated together, it is higher than the average bulb. On July 31 last year, at the Guangdong Provincial People's Congress group discussion, a Guangdong Provincial People's Congress representative clearly opposed the "serious implementation of the public lighting field to promote the use of LED lighting products program" in the report of the Provincial Development and Reform Commission, he said that if the government To support, support the research and development process, rather than support the promotion of products. At the same time, it is necessary to hand over the promotion of LEDs to the market and let the market choose. If the government makes a strong promotion, it is easy to make mistakes. It is understood that China's LED industry is still in its infancy, and the price system, product specifications, technical standards, industry norms, government policies and other aspects are not mature. If you only rely on the subsidy policy to "inflict" into the LED industry, it will make the industry irrational. The reporter learned that the general manager of a well-known LED company in Foshan recently chose to resign and became a university teacher. In fact, the "hidden rules" in the LED industry are mainly due to the fact that enterprises rely too much on government financial subsidies, which is quite similar to the household appliance subsidies of that year, and also related to the local government's industrial guidance policies. For example, Sanan Optoelectronics and Dehao Run of the LED industry, with the support of local governments, have a net profit growth rate of more than 100% in 2011. Among them, the contribution rate of government subsidies to DeHao Run is 79%. The contribution rate of profits is as high as 90%. These companies have little market action. According to the “Audio Audit Results of 5044 Energy Conservation Utilization, Renewable Energy and Resources Comprehensive Utilization Projects” recently announced by the National Audit Office, the central government allocated a total of 11 and 2012 transfers to energy conservation in 2011. The funds for the three categories of energy conservation and environmental protection in the comprehensive utilization of renewable energy and resources were 81.83 billion yuan. Among them, the promotion of high-efficiency lighting products was 1.876 billion yuan. Some insiders worry that if the government blindly subsidizes LEDs, it will lead to this emerging industry stepping through the photovoltaics. “Photovoltaics is that some people use the new energy concept to defraud the government's subsidies,” said a staff member of a photovoltaic company with a lesson. It is understood that China's LED core technology is mainly in foreign countries, once the core technology is blocked, it will surely encounter the disaster. If this happens, the government’s excessive financial subsidies for LEDs would cause a large amount of overcapacity, vicious competition between industries, and ultimately ruin the entire LED industry.