Chinese led market covers a variety of applications, including LED displays, traffic lights, car lights, LCD backlighting, keypad, digital camera flash, decorative lighting, street lights and general lighting.Driven by government support and new applications, the Chinese LED market in 2011 will rise to $ 5.8 billion from $ 4.7 billion last year which is up by 23% .Due to more widely used in LCD TVs and street lighting, LED has become popular product in China, and is very attractive investment area. In addition, the government's support of the industry seems to have an effect. Chinese LED market is expected to reach $ 6.9 billion next year ,in 2015 to reach $ 11.1 billion, compound annual growth rate from 2010 to 2015 is 17.7%.Street will be the largest application areas, this year it will reach $ 1.5 billion, in 2012 to $ 1.8 billion. As the large-size LCD TVs and notebook computers use LED, LCD backlighting market will usher in strong growth, in 2015 annual sales will grow to $ 1.8 billion from $ 713 million this year.Although the LED is relatively prosperous in China, but compared to the United States and Taiwan, mainland China's LED industry is still in its infancy. China is lagging behind in this area, including the reasons behind the technical capacity and lack of experienced management personnel and research and development engineers. In addition, China is lack of upstream intellectual property rights in other core aspects of the LED wafer.However, the Chinese LED manufacturers can obtain dequate funding from the local and central governments, which will help domestic enterprises occupy most of the Chinese LED market. So far, the local government provides at least 70% of the subsidies for the purchase of MOCVD equipment, subsidies for each machine is equivalent to about $ 1.5 million. In addition, the government also provides tax and utility incentives to encourage businesses to invest in the domestic LED industry, which is also very attractive to local businesses.From long term, a new factor driving the growth of the LED industry will be the general lighting market. In view of global trends of reducing carbon emissions,the Chinese general demand for LED lighting will be very strong. LED is of low power consumption and environmental protection. IHSiSuppli's data shows that the LED in general lighting shipments will account for 15.5% of the overall LED market.