Technical Barriers Raise Export Risks and Costs for Chinese LED Exporters

News Source: (中國行業研究網)

China’s LED exports are impacted by a new wave of foreign technical barriers. According to market statistics, since 2012 the U.S., EU, Japan and other country and regions are implementing new LED standards. On Feb. 1, 2013, the EU stipulated all imported luminaires must enhance Electric and Magnetic Force (EMF) tests. Recently, the EU has also issued a new LED energy efficiency regulation that required all products exported to EU must meet the new standard starting from Sept. 1. The LED product lighting efficiency will be gradually raised though three phases starting from Sept. 1, 2013, Sept. 1, 2014, and Sept. 1, 2016.

Trade barriers and technological barriers have brought new market changes recently, and affected China’s LED export companies. These have had two major effects, the first being increased export risks. As the bar for technological standards gradually rises, so has the report rate for Chinese exports, and significant increases in export risks. EU Rapex, for instance has reported of the 54 Chinese lighting products exported to China, 19 were LED lights, accounting for 35.18%, with a YOY increase of 23.61%.

The second effect has been increased costs for companies. Taking the new EU LED lighting product regulation as an example, starting from the second phase of the new regulation after Sept. 1, 2014, only LED lamps with high energy efficiency will be able to enter the EU market. As a result, manufactured LED products or OEM products must purchase and use better power management chips. The standard can only be achieved through the use of improved LED chips.

LED companies in the Asia market should improve the establishment of core technologies, study related export market laws, legal regulations, standards, and prepare in advance measures to cope with technology and trade issues. At the same time, the companies should also establish test laboratories approved by foreign countries to lower its testing fees and production costs. LED companies should also consider developing LED “blue ocean markets,” such as Latin America, Africa, Middle East, Southeast Asia and other emerging markets.

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