The UK is paying more attention to the impact from China’s easing economy upon the global economy. China’s economic slowdown has spurred Chinese enterprises to increased overseas engagement after a long learning period, Chinese enterprises will have significant impact on the global market within five years, a BBC report cited Donglei Wang, President of NVC Lighting saying.
Wang indicated easing economic growth has greatly impacted manufacturing business, which means SMEs are going through a very difficult time. A conservative estimation is that at least one third of Chinese LED manufacturers will exit the market this winter. NVC Lighting, a leading Chinese lighting brand, has sensed the huge impact from the decelerated economic growth. In 2015, the company’s residential lighting revenue grew, while commercial lighting declined.
Chinese government has become more attentive to sustainability issues and tried to solve emerging environmental issues. The government support of the LED lighting industry is one of the solutions. In 2014, the overall Chinese lighting semiconductor worth grew 36% from RMB 257.6 billion (US $39.8 billion) to RMB 350.7 billion (US $54.2 billion). So far, the lighting semiconductor industry development remains fragmented.
LED industry is not the only one that is suffering. Experts suggested China’s real economy development will involve SMEs growth will be dependent on large enterprises, and large enterprises will rely on banks.
Western media started to turn their attention to Chinese enterprises’ oversea status. Wang is convinced that the declining economy drove large enterprises and leading brands overseas, which is the case of NVC Lighting.
According to Henry Sun, chairman of the UK-based NVC Lighting Ltd, the company has entered UK mainstream market for a few years. The UK-based company is thoroughly localized with integration of different ideas and cultures. Most of the managing groups are local lighting professionals. Depreciation of Renminbi (RMB) is beneficial for overseas business development.
Declining Chinese economy stimulates new growth potentials for Chinese manufacturers too. NVC Lighting aims to become one of the top five global leaders in the industry, “We hope to become a leading global business, while focusing on European and American markets. Our goal is to become one of the top three lighting companies worldwide. This is our chance and challenge at the same time,” said Wang.
