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The situation of a listed company in the LED chip field that the author recently contacted can prove Li Keqiang's thinking. The company is under a lot of pressure. The chairman said that one is that Maori is eaten by interest and that the annual depreciation is more than three billion. The company's average loan interest rate is 6%, which is very low compared to SMEs. The depreciation policy is amortized over 20 years and is not radical. But the chairman said that the loan interest rate fell to 1% to 2%, which is better than some.
Why are leading companies so difficult? The chairman said that the government subsidies are mainly due to the fact that there are too many government subsidies in the whole industry, the production capacity is too large, and the prices are falling.
LED lighting represents the next generation of lighting, in line with green low carbon energy requirements. Therefore, starting in 2007, the government began to advocate the elimination of high-brightness and high-energy lamps. After the financial crisis in 2008, the "Opinions on the Development of Semiconductor Lighting Energy-Saving Industry" was announced, and proposed a series of industrial development goals, specifically to the annual growth rate, product market share, in functional lighting, LCD backlight, landscape decoration and other aspects of occupancy. Etc. Semiconductor lighting is also included in strategic emerging industries. In 2012, the relevant departments will explicitly spend 40 billion yuan on LED street lamp procurement and provide 30% financial subsidies for LED street lamp users. In order to promote the consumption of energy-saving home appliances and other products, energy-saving lamps and LEDs have also received more than 2 billion yuan in subsidies. In places, the enthusiasm is higher. In a few short years, a large number of metal organic chemical vapor deposition equipment (MOCVD) has been purchased, mainly relying on government subsidies, but it is basically not economic.
Statistics show that from 2009 to 2011, the country has added more than 20 LED chip projects every year, with more than 80 chip companies. Some places have to pay hundreds of millions of yuan or even two or three billion yuan in financial subsidies, which must occupy a place. Two years ago, China's MOCVD equipment, if fully operational, could meet 80% of the world's LED lighting needs.
In March 2013, Shenzhen Municipality abolished the “Notice on Printing and Distributing Shenzhen LED Industry Development Plan (2009-2015)â€, marking the government's awareness of the blindness of the LED industry's blind development. At present, there are only 20 LED chip companies that can be normally produced, and there may be only a few in the future.
The method is always more difficult than it is. However, by distorting the allocation of resources and the government's decision to replace market decisions, it must not be used again. 
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The downward pressure on the economy is increasing, and everyone is anxious. As the "big family" of the entire economy, Li Keqiang is the most worried, but the basic ideas he has consistently adhered to have not swayed. He said in the Northeast that there is indeed a problem with the economic structure of the Northeast. Daqing and FAW “snap a sneezeâ€, Heilongjiang and Jilin will “catch a coldâ€! But how is this structure adjusted? Certainly, it is impossible to rely on the government to set up a new industry. It is still necessary to stimulate the vitality of the market; it is determined to simplify the administration of power, to combine management, to break the constraints of the system and mechanism, and to truly create a loosening of the enterprise development and the people.