The development and maturity of LED technology have brought about an increase in luminous efficiency and a decrease in price of LED lighting products, and the promotion and application of LED lighting products have also had a good prospect. In this regard, LED lighting standard light components have also been innovated in management and a strict management standard system has been established. In the first half of 2013, the demand for indoor LED lighting was strong. LED enterprises said that there was a shortage of medium-power LED Indoor lighting products, including bulbs, light pipes and embedded lighting. Industry insiders estimate that China's LED lighting market will grow by 50. 5% in 2013. Therefore, some LED enterprises in China may restart capacity expansion. Even so, hidden dangers affecting the healthy development of LED industry still exist. First of all, the technological innovation ability is weak, and the value chain products represented by chips are still mainly in the hands of foreign enterprises. For example, China's existing more than 980 MOCVD machines are basically imported, and the key equipment in the middle and lower reaches is mainly imported, which has laid hidden dangers for the growth of the industry. Secondly, the industry lacks leading enterprises. A large number of SMEs occupy low-end market play the price war products quality is worrying. The annual operating income of large-scale LED enterprises in China is only a few billion yuan, which is far from the annual sales of international giants of 10 billion US dollars. After that, China still has direct subsidies to production enterprises, and the policy orientation needs to be standardized. At present, governments at all levels have issued some promotion policies, which are intended to subsidize technological innovation, but are used by some enterprises to expand production capacity, resulting in unfair competition and disorderly expansion of production capacity. disrupting the original market order requires policy adjustments. In view of these deficiencies, China's LED enterprises can make countermeasures to strengthen their competitiveness. Pay attention to product innovation and R & D investment, improve the technical content of products, seek cooperation with foreign manufacturers in some key technologies, and compete with local enterprises. reduce dependence on foreign technology. LED enterprises in our country should develop their own scale and product quality. Only products with excellent quality can stand in the fierce market competition and achieve strong development. In addition, enterprises cannot rely on subsidies to complete development, and they cannot develop for subsidies. Instead, they must aim at the development of enterprises and industries and take a long-term view so as to achieve sustainable development.