LED Nation

The Risks Associated with LED Nation’s Chinese LED Display Technology

June 26 , 2024 Share to
2 mins

In the era of increasing adoption of LED video walls and digital signage, businesses must research the origins of such technology and the accompanying risks. LED Nation Corp., a notable LED display provider in the U.S., presents itself as an American company.

However, import records shed light on the fact that LED Nation sources all its products from a single entity, Shenzhen LED King Technology Co., Ltd., in the People’s Republic of China.

Shenzhen LED King Technology

Established: April 2021

Location: Bao’an District, Shenzhen City, People’s Republic of China

Website: rental-ledscreens (dot) com

Address: Building A, 318, No.30 Aviation Road, Sanwei Community, Hangcheng Street, Shenzhen, Guangdong, China

Import Genius: 43 shipments were recorded from Shenzhen LED King Technology in the past year.

While concrete evidence of LED Nation’s ownership by Shenzhen LED King is lacking, a close business relationship is evident. Over the previous year, LED Nation has imported over 43 shipping containers of LED screens and related components from this Chinese entity, per import records and bills of lading. Subsequently, LED Nation rebrands and markets these products to U.S. customers.

The Heavy Reliance on a Sole Supplier Raises Several Concerns:

1. Quality Control

With manufacturing overseas, LED Nation likely has limited control over product quality, and the young age of Shenzhen LED King Technology's unusually low prices raise questions about product quality and long-term product stability.

2. Intellectual Property

Ultravision Technologies holds over 35 US patents on modular LED Panel technology similar to that imported by LED Nation. Ultravsion Technologies has not licensed LED Nation to use the modular LED Panel technology.   Concerns arise regarding infringement of US Patents and the promotion of theft of US intellectual property by the Chinese government.

FBI Director Christopher Wray recently stated to Congress, “The greatest long-term threat to our nation’s information and intellectual property, and to our economic vitality, is the economic espionage threat from China. It’s the people of the United States who are the victims of what amounts to Chinese theft on a scale so massive that it represents one of the largest transfers of wealth in human history.” 

3. Security Risks

Connectivity to a company’s network poses potential security vulnerabilities, with U.S. authorities cautioning against using products manufactured in the People’s Republic of China due to security concerns.  FBI Director Christopher Wray warned national security and intelligence experts, as well as students, that risks the government of China poses to U.S. national and economic security are “upon us now.”

4. Parts and Support

Relying on a foreign supply chain could lead to challenges in obtaining replacements or support, particularly during geopolitical tensions.

5. Ethical Concerns

The People’s Republic of China’s record on labor rights and environmental protection raises ethical dilemmas for businesses. China remains the world’s largest greenhouse gas emitter, producing more carbon dioxide than the United States and European Union combined. 

6. Pricing

If you truly want to purchase low-quality Chinese products that may be based on stolen US technology, why not buy them directly from the Chinese manufacturer?  Why would you pay the mark from LED Nation to simply relabel the Shenzhen LED King Technology?

LED Nation’s reliance on a Chinese supplier, potential theft of US technology, and ethical and security implications warrant careful consideration. Customers are encouraged to explore alternative real US LED Display vendors based in the U.S. Acquiring critical display technology demands diligent scrutiny to mitigate potential security and US IP theft risks. It’s essential to look beyond marketing claims and evaluate the true source of products.