Domestic cable development risks

At present, China's cable industry development can be said to be a round of danger. Although China is the world's largest producer, the domestic cable industry is not optimistic. The main reason is that Europe, including Japan and South Korea and other cable brands, "entrance", continue to erode the fertile market that belongs to China's cable companies; In addition, due to the lack of control of production investment in the domestic cable industry, coupled with insufficient export capacity, domestic The weak market has caused a serious overcapacity in the industry. As a result, the domestic cable industry has been caught in the strange phenomenon of low-level redundant construction, and the entire cable industry has thus entered a vicious cycle of low-price competition, vicious competition, and declining product quality.

At present, no matter low-voltage cables, medium-voltage cables, high-voltage cables, or extra-high-voltage cables, their production capacity is a serious surplus. Despite the country’s astonishing capacity for wire and cable production, it has exceeded the market’s demand and caused serious problems. The "supply exceeds demand" phenomenon. Even faced with such an embarrassing situation, due to the low threshold of the domestic wire and cable industry, many new-born companies are still joining the wire and cable industry. Due to financial pressure, rising raw material prices, difficulty in stabilizing the market in a short time, etc. These enterprises can only use counterfeit and shoddy products, shoddy work, cutting corners, shoddy work, and even directly falsifying other manufacturers' brands to gain market share. This not only undermines the legitimate interests of forged companies, but also buries huge security risks. Endanger the sustainable and healthy development of the wire and cable industry.

With the implementation of the “Eleventh Five-Year Plan” and the implementation of the “Twelfth Five-Year Plan”, the wire and cable industry in China has provided a great development environment, and the market is unprecedentedly large. In the past ten or more years, China's wire and cable industry has also grown rapidly. At present, China's wire and cable industry has become China's machinery industry second only to the automotive industry, with an annual output value of more than 1 trillion yuan. However, during the development process, there is a phenomenon that shows no optimism. For example, there are no dominating phenomena in Japan as in the cable industry in Japan.

According to relevant statistics, at present, of China's more than 7,000 cable manufacturing enterprises (more than 700,000 employees), over 95% are small and medium sized enterprises, and there are even some minitypes that do not have production capacity and lack the most basic quality control and inspection methods. Enterprises have laid a lot of hidden dangers for the development of the domestic wire and cable industry. At present, some domestic large-scale wire and cable manufacturers call for “sweeping mines”, through the “merger and reorganization, merger and acquisition” and other forms to expand the production enterprises, nurture China's leading enterprises, so that it competes with the international cable companies, and in order to regulate the domestic Cable market. Theoretically speaking, it seems feasible, but how to implement and how to land has yet to be further tested in the market.

In the face of the market, apart from stressing quality, credibility, and technology, everything else is false. From this point of view, "merger, reorganization, and merger and acquisition" should be implemented, but the development of new growth in the cable industry, the development of high-end cable products, pay attention to strengthening the technological content, expand input testing equipment, and improve the international competition of domestic cable companies It is even more necessary to implement it. Because of this kind of input, we can completely get rid of the phenomenon of serious homogeneity and unpleasant export conditions, and can even ease the vicious competition issues such as low-price bidding. The reason is very simple. Because such products have high technical content and good product quality, they have created insurmountable obstacles for imitation of unscrupulous manufacturers and laid the foundation for product exports.

In addition to the domestic cable industry and cable companies' own efforts, the sustainable development of the cable industry should rely more on the joint efforts of government departments, the entire society, and users. The government shall formulate policies that are conducive to the development of the domestic cable industry (including the loan financing policy), followed by the need for joint supervision of the whole society, and the need for users to increase the importance attached to wire and cable products and cable-related knowledge, and rationally select wire and cable For wire and cable brands with hidden dangers and disasters, timely feedback and report to regulate the development of the wire and cable industry.

The domestic wire and cable market, this piece of fat at the same time so that the international cable companies look bright and ready to pounce up and share it. In fact, at present, several major cable giants have stepped into the Chinese cable market, especially the entry of special cable products, which has intensified the fierce competition in the special cable industry, and has caused some domestic cable companies to face a crisis of survival. Under such circumstances, China's wire and cable companies must be stronger and bigger, not only to gain a firm foothold in the country, but also to maintain the growth of export guarantees and to enter the cable markets in Japan, the United States, and France. Carve up the international market share and restructure the future international cable market.