In December 2014, the Chinese government announced it would no longer be encouraging local governments to issue financial subsidies to LED manufacturers. The announcement which could have brought a sigh of relief to foreign competitors, had come perhaps a bit too late for some. Yet, it is probably too early to make the Chinese government as the scapegoat for the woes of the LED industry. Here’s why.

The Chinese central government recently issued a statement requesting local governments to stop issuing LED chip and wafer subsidies or offer favorable tax conditions.

The Chinese central government’s policy to terminate LED industry subsidies will be extended to local governments, according to a latest Chinese-language UDN report.