Since July 2007, when the General Office of the State Council issued a Circular on Establishing the System of Mandatory Purchase of Energy-saving Products by the Government, the energy-saving policy has been resolutely carried out in China. In April 2008, a meeting on the promotion of highly efficient products was held by the Ministry of Finance and the National Development and Reform Commission. Since then, the Chinese Government has officially begun its work on policy of fiscal subsidies on the energy-saving lamps. On 5th Nov. 2008, the State Council had established ten measures on advancing the economic growth, and launched 4000 billion Yuan on stimulating domestic demand. In Dec. 2008, in order to save energy, reduce emission, phase out incandescent lamps as well as promote energy-saving lamps, the National Development and Reform Commission has initiated the compilation of The Plan of Phase-out Incandescent Lamp and Accelerating the Promotion of Energy-saving Lamps In China, to implement further energy-efficiency.
     It is known that compared with traditional lighting technology, LED lighting is energy-saving and eco-friendly, to be called the new lighting source of the 21st century, and listed by the Five-year Development Program in the prior development program in the field of energy. In addition, the greatest strength of LED is to save electricity. If the lamps of the highway above the Grade-2 had been transformed into the LED roadway lighting, nearly 5 billion kilowatt-hours of electricity would be saved every year, which will amount for 20 billion tons’ tce, and save 10 billion tons’ CO2 emission, or 43,000 tons’ SO2 emission. Therefore, it is obvious that the technology of LED roadway lamps has economically, socially, and eco-friendly achieved great progress.
     As been vigorously advocated by the government, the LED green lighting industry in China has been developed to a large extent. In cities like Tianjin, Shenzhen, Donguan and Guangzhou, the experiment plots of the energy-saving project has been set up to demonstrate the job. The highly-efficient LED lighting products which have a remarkable strength of energy-saving after the experimentation of the project were listed in the green purchasing menu of the government, and in these cities LED companies could be partly funded by the government. For example in Shenzhen, the city government has conducted the policy of fiscal subsidies to the LED companies. According to the rules, in Shenzhen, if the investment in the semiconductor lighting industry related with backing material, epitaxial wafer, chips and other equipment manufacturing companies exceed 100million Yuan, the company could enjoy a subsidiary of up to 3 million Yuan. Under this energy crisis, as advocated as highly valued by the government, the LED industry would definitely step into a new chapter.      On the other hand, LED companies have gained good comments from all walks of life. On the Guangzhou International Road & Patio Lamp Fair in March this year, brand-named corporations such as Deshida, AHA, Neo-Neon, Qinsun and Seoul Semiconductors etc had fully exhibited the great application prospect of high-power LED roadway lighting, making energy-saving and eco-friendly a focus. Visitors all over the world had phrased the high-efficiency of the LED products. Besides, some government associations had acknowledged that the application of LED in China had ranked in the forefront of the world.      In 2009, the work of saving energy and reducing emission will be further promoted. As energy-saving has been a consensus, the state policy of fiscal subsidiaries on energy-saving products, which shows the government’s resolute to saving energy and emission, would undoubtedly shed some light for the energy-saving lighting industry, and provide a good platform for all governments to implement LED roadway project.