As of June 2, Beijing time, the global COVID-19 epidemic has intensified, reaching more than 6.39 million cases, and the cumulative number of deaths has exceeded 378,000. From China, Japan and South Korea to Europe and the United States to Russia, Brazil, India and other countries, the cumulative number of confirmed cases of new crown pneumonia in the world has risen rapidly. The global economy is facing a severe recession crisis. The LED industry has also been hit hard. It has experienced long resumption of work and production, transportation and logistics control, and supply The difficult situation of chain stagnation, severe shrinkage of market demand, and substantial reduction of orders. At the same time, Sino-US trade frictions continue to increase. On May 23, Qihoo 360, Yuncong Technology, Fiberhome Technology, etc. were included in the "Entity List" by the United States, and my country was included in the United States' "Entity List" totaling 1,373 items. The Sino-US "trade war" is constantly escalating.
In 2019, the U.S. market is still the single largest export market for lighting products. In 2019, due to the impact of Sino-U.S. trade frictions, it fell by nearly 10%. As a result, the proportion of the North American market dropped by 3% and retreated to the second place; Europe rose by 2.01 % Share overtakes North America and ranks first, among which countries such as Germany, Britain, France and the Netherlands have always been among the top export markets.
LED exports fell sharply in the first quarter of 2020
Affected by the global new crown pneumonia, the export value of LED products has continued to decline since February 2020. According to data, China exported 5.02 billion US dollars of LED products in the first three months of 2020, of which the decline was the most obvious in March, with a 15.6% decline. The total export value was 1.61 billion US dollars, accounting for 32.1% of the total export value. The overall downward trend is very obvious. , The cumulative same ratio has dropped by 11.28%, and China’s LED companies are facing tremendous operating pressure.
How should LED companies respond?
As the global impact of the new crown pneumonia continues to expand, and the United States continues to strengthen the enforcement of export controls and sanctions, Chinese LED companies are facing increasing risks in the process of participating in global trade activities. Chinese LED companies should pay attention to the domestic market and strengthen online customers Develop capabilities to actively improve the corporate compliance system in response to US export controls and sanctions to prevent and control related risks.