At present, there are more than 80% LED displays in the world market from China. In China, about 80% LED displays come from Shenzhen. Here, there are the largest production base and the most complete supply chain in the world. Economic policy and situation of Shenzhen have a great impact on the LED display industry, of which the importance is self-evident.

    It is understood that there are many LED display manufacturers and related raw materials, parts enterprises which have relocation will. The reason is partly that there is a sharp rise in rent in Shenzhen, which has caused a serious crisis of survival for SMEs with a low profit margin.

    In recent years, plant rents have generally risen by 30%, with some areas even exceeding 100%. The author learned, the same floor, the price was 14.5 yuan a square meter a decade ago, the price rose to 30 yuan after the contract expires, the rent directly doubled, in addition to 30% of the pool, it adds up to 39 yuan. Rent of Shenzhen factory is about 20-40 yuan a square meter, a floor of 1500 square meters workshop, the annual rent is as high as 36 -72 million, and increased year by year.

    Enterprises not only need to withstand the pressure of price rise brought about by inflation, but also suffer from the drawbacks caused by the chaos in the rental market. Driving by law of market economy, a large number of second-hand landlords and intermediary companies have emerged in rental market. They usually rent the entire industrial park at a market price or slightly lower than the market price, and then make profits by distributing. However, due to lack of corresponding management policies promulgated, the management of this market is chaotic, which brings considerable economic pressure to the enterprises. In the author's understanding of the situation, Ill management is mainly reflected as following:

    First, a lot of unreasonable fees charged. The pooling fee is not only questionable for its rationality, but also has no standards for the amount charged. Users reflect they were charged 30%, some were 50% to 100%. In addition to the pooling costs, there are extra utility bills, 800-2000 yuan extras in the name of equipment loss, and most astonished to tenants, there are "tea-fee" and "transfer fee". 

    Second, contract area claimed isn't always consistent with practical area. A tenant tells a story of his own: Contract said 968 square meters of the plant eight years ago, now it says 1300 square meters after several renewals. Some netizens quips, rent of a plant increases, so does its cover area.

Third, execution isn't in place, landlords act wilfully. Tenants reflect that landlords almost have the final say. Government of Shenzhen has already promulgated the peak, flat, valley electricity charging measures, but some of the landlords ignore them. Even if the tenant wants to leave when contract is about to expire, Exit is also not easy. The landlord always gets his way to refuse to return the tenant's deposit. 

    To LED-display SMEs, the development plan of Shenzhen is the most unfavorable. At present, Shenzhen is eliminating labor-intensive enterprises and creating technological transformation. It has achieved great success in the implementation of several years.