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But domestic demand is weak

Beijing has set a target for LEDs to account for 30 percent of the domestic general lighting market by 2015, more than triple the current level. That would cut annual coal use by 35 million tonnes, according to official estimates.

If half of China's lights were LEDs, the electricity saved would be 2.5 times that of the annual output of China's Three Gorges Dam, the world's largest hydropower project by capacity, analysts say.

But domestic demand is weak. Despite subsidies and the promise of reduced power bills over time, Chinese households have been slow to switch to LEDs because they are still much more expensive to buy than conventional lights. Quality issues have also hurt consumer confidence.

 At least 20 percent of Chinese LED high bay light firms may be forced out of business, according to industry experts and even some LED company officials.
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