Recently, “economic internal circulation” has attracted public attention. On July 30, the meeting of the Political Bureau of the CPC Central Committee pointed out that it is necessary to accelerate the formation of a new development pattern with the “domestic cycle” as the main body and the mutual promotion of domestic and international double cycles, establish a medium and long-term coordination mechanism for epidemic prevention and control and economic and social development, adhere to the strategic direction of structural adjustment, rely more on scientific and technological innovation, and improve the cross cycle design and regulation of macro-control, Achieve a long-term balance between steady growth and risk prevention.

China has begun to start the internal economic cycle, and the LED display industry may usher in the reshuffle stage

Some economists believe that China has begun to start the “internal cycle” to resolve economic structural problems, which is no less than the supply side structural reform. It is regarded as the signal of the great strategic turn of China’s economy, and the discussion on internal circulation is also increasing day by day. So, what is economic internal circulation?

In short, economic external circulation means that domestic economy and industry participate in the supply and demand of international industrial chain. Domestic is only a link of foreign overall economic and industrial circulation and cannot form a cycle alone. The internal economic cycle is that the supply and demand of the industrial chain can be completed in China, including product R & D, design, brand, raw materials, production and processing, sales and after-sales service. The whole industrial chain is in China. The most key content is to expand domestic demand, drive the domestic consumer market and upgrade consumption.

The novel coronavirus pneumonia was the main three largest economy vehicle in China. The investment, export and consumption were the main driving forces for the economy. But at present, the international trade protectionism is rising, the world economy is low, and the epidemic is rampant. The major epidemic countries of the world and the major trading nations have all had a new crown pneumonia epidemic, which has even exceeded the financial crisis in 2008. Global trade and supply chains have been hit unprecedentedly. In the external environment of shrinking market, export is blocked, and China’s foreign circular economy is weakening. Therefore, we must give full play to the advantages of domestic super large-scale market and add power to economic development by prospering the domestic economy and unblocking the domestic circular economy.

So, what is the impact of starting the internal economic cycle on LED display enterprises?

There is no doubt that the biggest impact is that the competition is more intense. Affected by the epidemic, the development of LED display foreign trade enterprises has been greatly impacted this year, and they have turned to or increased the layout and competition of the domestic market. Taking abison as an example, this year, abison expanded the domestic market, launched the “tree planting plan”, carried out the 2020 channel expansion action of “peer cooperation and win-win” with AI, and successively started a powerful channel joining conference in Chongqing, Shaanxi, Hubei, Xinjiang, Hebei, Yunnan, Heilongjiang and other provinces and cities across the country.

Chunjiang water heating duck prophet, enterprises focusing on overseas trade can feel the changes in the overseas market at the first time. When some foreign trade enterprises turn to focus on domestic, enterprises focusing on the domestic market can fully feel the sudden changes in the domestic market this year. For LED display enterprises, “internal circulation” has already begun.

China is the only largest industrial country in the world with a complete industrial category. According to the integrity of the industrial system, we have 41 industrial categories, 191 medium categories and 525 sub categories. We are the only country in the world that has all the industrial categories listed in the United Nations Industrial Classification. All the industrial categories listed in the United Nations industrial classification can be found in China. At the same time, China is also the largest single market in the world, which is the basis for China to start the internal economic cycle.

We have the conditions not to rely on foreign markets and strengthen self production and self marketing to fully ensure domestic demand and maintain the needs of normal life and production. In this way, we should not only give play to the internal system and industrial advantages, but also turn the previous over reliance on the international industrial chain and supply chain to development and supplement the integrity of the domestic industrial chain, so as to enable China’s economy to operate relatively normally and realize the “internal cycle” of economic independence.

In China’s LED display application industry, LED display screen accounts for more than 70% of the global sales share. In terms of production and preparation, a series of high-end equipment and materials, ranging from phosphor and packaging glue to MOCVD, crystal fixing machine and wire welding machine, have been highly localized. Except that individual parts and high-precision equipment depend on imports, they can basically be self-sufficient. Even if the global industrial chain of LED display application industry is interrupted, corresponding substitutes can be found in China. There is no problem in the safety of the industrial chain and supply chain of LED display screen, which provides a guarantee for the “internal circulation” of LED display screen enterprises.

One of the keys to the internal cycle of the economy is consumption. We need to expand the magnitude of consumption and improve the level of consumption, making breakthroughs in both quantity and quality. The other is manufacturing, which is to march towards high-end manufacturing, upgrade the industrial chain, and make up for shortcomings in some core technologies. If we can’t make breakthroughs in key technologies, we will be stuck, which will make it difficult to truly realize the internal economic cycle.

The experience of Huawei is a typical example. Even if the LED display enterprises do not have a neck jam, if they do not have a healthy domestic market, as a part of China’s manufacturing industry, the LED display will inevitably be affected. Just as at present, although the epidemic has been controlled and the production capacity of LED display screen has been restored, people dare not let go of consumption in the case of low demand in the whole market. Except for some specific occasions, display screens are generally non essential, and their application in the domestic market has naturally been seriously impacted.

How to open the consumption link is the most difficult problem at present. Another big piece of domestic demand is the construction of new and old infrastructure, especially the new infrastructure represented by 5g, which will be the key to economic transformation and upgrading in the future. The linkage effect brought by the new infrastructure will also provide broad application space for the future development of LED display, which are foreseeable future.

At present, the domestic production pattern of LED industry is mainly concentrated in the Yangtze River Delta, Pearl River Delta, Bohai rim and Fujian Jiangxi regions. The application of LED display products is mostly in first tier cities such as North, Shanghai, Guangzhou and Shenzhen, relatively few in other second and third tier cities, and there is less demand for LED display in cities (towns) and towns. In general, the more economically developed areas are, the more common the application is. In less developed areas, the demand for LED display screen is relatively small. To start the internal circulation, it is bound to revitalize the whole country. If the LED display can plan the layout on the whole chessboard, the development prospect of the domestic market will be bright in the future.

In fact, our LED display enterprises have already taken action. Whether it is the “thousands of stores and ten thousand points” with strong huge color in recent years, sinking the channel network to urban and rural areas, or the “tree planting plan” launched by abison this year, it is a huge enterprise action to extend the channel to all major regions.

Under the situation that the epidemic situation in major economies is still not effectively controlled, it will encourage more foreign trade enterprises to increase competition for the domestic market. Therefore, our enterprises should not only take the “big ship” of economic internal circulation, but also grasp the development opportunities brought by new infrastructure. At the same time, we should also actively explore niche markets and focus on the development opportunities in emerging fields.

It should be pointed out that China is the beneficiary of globalization. Starting the economic “internal cycle” is also a response to the changes of the current international situation, and the “internal cycle” will form a supporting industrial chain cycle between domestic demand and supply, which will also form a new allocation of resources. Internal circulation is actually stimulating consumption by stimulating demand through product innovation and design, and the resulting performance and profits feed back the enterprise. For China’s LED display enterprises, scale and price used to be our advantages, and the development of small spacing makes the development of China’s LED display application industry two to three years ahead of foreign countries. However, in high-end applications such as movie screens, there is still a gap in competition compared with Samsung, Barco and Sony.

Nowadays, the LED display application industry has reached the stage of technology blooming and constantly exploring new applications, and is in the stage of development from quantity and scale to high quality. The application of “n-in-1-smd”, cob, gob and other technologies with Chinese characteristics may obtain further development in the process of reshaping the industrial pattern. Especially with the development of 5g + 8K, LED display from small spacing to micro spacing is the general trend. Under the influence of many factors, the development of China’s LED display application industry has also shown a new trend.

Enterprises began to turn from a single product provider to a professional system integrator. Products have also gradually moved from non-standard to standardization, and highly integrated products such as conference all-in-one machine have emerged. The application of LED display screen is no longer limited to the professional market, but actively exploring the road of popularization and striving towards the consumer market.

With the continuous progress of technology and the continuous expansion of market application fields, China’s LED display will still lead the world in the future. As the main single market for LED display applications, we will have great prospects in the future.

Of course, the market is always accompanied by competition. Some people worry that the fierce competition in the domestic market will make LED display enterprises face severe survival challenges, which may lead to a new round of reshuffle in the industry. Although this concern is not unreasonable, it is also an inevitable development trend to eliminate backward production capacity, promote industrial transformation and upgrading through the survival of the fittest, and open a new chapter driven by innovation.

However, it should be pointed out that while we are adding to the domestic market, we cannot ignore the overseas market. Starting the internal economic cycle does not mean that we give up the overseas market. The meeting of the Political Bureau of the CPC Central Committee has clearly formed a new development pattern with “domestic cycle” as the main body and domestic and international double cycles promoting each other. In the future, the LED display industry will focus on the domestic market and open up new international markets at the same time.

At this stage, the economies of major developed countries such as Europe and the United States are much more affected by the epidemic than those in Southeast Asia. With the gradual recovery of social and economic activities in those countries less affected by the epidemic, the market will still have great prospects in the future. Especially, the “one belt, one road” countries will also be the opportunity for LED display enterprises.

In a word, under the new development pattern of economic internal circulation and mutual promotion of external circulation, LED display enterprises should also deeply cultivate the domestic market on the one hand and actively expand the overseas market on the other hand. It is believed that the epidemic will eventually pass, and then the suppressed market will usher in the vitality of reopening. Before that, our LED display enterprises only need to make steady progress, strive to improve their innovation ability, create higher quality products, and accumulate strength for the future market.

Leave a Reply

Your email address will not be published. Required fields are marked *