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With the rapid development of the social economy, smog seems to have become an inevitable outcome of the development of the times and has become an annoyance of urban growth. At the Hainan Boao Forum on April 11, 2014, the rectification of smog became an important issue; the China People’s Congress’s Political Consultative Conference held in March also listed the plague as a poison in the capital. Wu Xiaoqing, deputy director of the Ministry of Environmental Protection, pointed out that the environmental protection investment during the 12th Five-Year Plan period will be nearly RMB 5 trillion. This investment is 24 times the annual output value of green energy in Taiwan. Therefore, the Taiwan region, including LED and other energy-saving and environmental protection-related industrial chains, has sharpened the knife to China.
However, this huge business opportunity has also attracted competition from local and European and American companies in mainland China.
Mainland China has the largest LED industry chain in the world, and it also has the potential of sweet and attractive domestic demand. In 2014, it was only in Guangdong Province that it would complete the project of two million LED street lights. In 10 cities under Fujian Province, there are also 300-500,000 baht.
Taiwanese businessmen want to grab the LED domestic demand market in mainland China, mainly through the following channels: First, they participate in public bidding for street lamps and other public governments, and second, they are going to take advantage of their own brand model and directly attack the consumer market.
However, these two roads are not good. The first road, the mainland usually stipulates that participating in the bidding must set up factories in the province to invest and contribute taxes. If not, it must be imported and levied 17 domestic sales tax, just set the factory, it must have been Many Taiwanese companies have deterred, not to mention that the charging method is to repay instalments. According to the amount of electricity saved in the province, the risk of Taiwanese collection is too high. As for the second road, it is necessary to win more than 6,000 LED manufacturers in mainland China, and spend a lot of money to make a name in the market.
Despite the challenges, but in the eyes of Xiao Hongqing, the secretary-general of the Taiwan LED Industry Alliance, which has been circling the two sides of the lighting industry for more than 20 years, Taiwanese businessmen want to have a place in the Chinese mainland market and must have two moves.
The first move, before rushing to the public bid, first figure out the bidding qualification of the other party; a well-known listed company in Taiwan once complained to Xiao Hongqing that it took a year and several times to assist the demonstration street in order to win the street lamp standard of the construction of the province. However, because the factory was not set up in the local area, there was no qualification for bidding.
In the face of similar standards, Xiao Hongqing's suggestion is that Taiwanese businessmen must cooperate with local system operators to become a pure product supplier, followed by system maintenance, collection, etc., which are handled by local operators.
The second measure, when attacking the consumer market, should play a function card, and before the Chinese mainland players have not thought of it, they will first introduce humanized health lighting, including automatic dimming over time (such as daytime white light, nighttime yellow light). The sensing action is automatically bright and dark, not just the performance of power saving and long life.
Such a proposal comes from the estimation of the LED inside consortium of Jibang Technology. In 2014, the output value of China's LED domestic demand market will increase by 40% compared with 2013. It is the fastest growing year after the financial tsunami; The annual growth rate of the quantity is actually as high as 80%, that is, the rapid decline in the price of LED products will continue in 2014, and it will seriously offset the annual growth rate of output value.
Taiwanese businessmen must fight price wars with mainland Chinese players, and the second place is the first place. It is absolutely impossible to get cheap. Xiao Hongqing believes that Taiwanese businessmen in the Chinese mainland market can only do things that Chinese mainlanders have not thought of or can't do.