China's cable industry should "live on its own"

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On May 10, during a visit to industrial enterprises in henan province, the general secretary of the communist party of China (CPC) central committee called for a "shift from Chinese manufacturing to Chinese innovation, from Chinese speed to Chinese quality, and from Chinese products to Chinese brands". This guiding spirit will be a strong impetus to accelerate the transformation and upgrading of China's wire and cable industry. In the future, the whole industry should pay attention to innovation and brand building, while the urgent task is to fundamentally solve the problem of changing from "speed" to "quality".

The cable industry has developed rapidly

As is known to all, the wire and cable industry is known as the "blood vessel" and "nerve" of the national economy. Since the founding of the People's Republic of China, especially since the reform and opening up, China has witnessed rapid economic development, strong demand for electric power construction and rapid development of the wire and cable industry, which has been on the train of China's rapid economic development.

Data show that by the end of 2013, China's wire and cable industry had realized an annual output of over one trillion yuan. At present, China has also surpassed the United States in the world, becoming the world's largest cable producer and the second largest industry after China's automobile industry. It took more than 60 years for our country to complete the road that developed countries have traveled for more than 100 years. China's wire and cable industry has made great contributions to the development of national economy, scientific and technological progress, and even the world economy.

However, China's wire and cable industry is suffering from various kinds of fetters and troubles in the process of continuous development.

Due to the gradual recovery of the global economy, the seek improvement in stability of China's economy has brought more development opportunities to China's wire and cable industry. However, the development brought by scale expansion is no longer sustainable, and the transformation and upgrading of wire and cable industry is urgent.

Throughout the current situation of the whole industry, the industry concentration of wire and cable industry in China is not high, and there is no large-scale effect. Weak innovation capability of science and technology is still the "soft rib" of the wire and cable industry. The road to technological innovation in the wire and cable industry is still a long way off.

Especially compared with the industrial scale and development speed, the overall quality of China's wire and cable products is obviously a large "short board". And the most prominent, the most headache for people in the industry, is the "man-made destruction" of product quality.

For a period of time, in the pursuit of high speed and high growth, the policy constraints and guidance of the wire and cable industry are obviously absent, the market supervision is not strong enough, the industry is not self-disciplined, resulting in blind expansion of investment and serious overcapacity. As there are too many people and too few people, there is a frequent trend of low price competition among enterprises. Fake and inferior products are rampant.

In recent years, the government departments at all levels to accelerate the backward production capacity, regulators vigorously promote quality improvement project, the industry association to take the price regulation, and other measures to regulate the behavior of market management, part of the super user is changing the lowest bid tendering rules, some excellent enterprise "positive energy" is consciously resist the erosion of "negative energy".

Through multi-party efforts, there has been a "combination of efforts" to eliminate "negative energy" in an all-round way, and the industry has also seen the hope of the wire and cable industry and the market field towards the rule of law.

However, due to the strong concealment, complexity and obstinacy of some "negative energy", the current market chaos has not been fundamentally curbed, and it is still a long way to go to regulate market behavior.

In fact, "negative energy", like a parasite, feeds on the power of the electric wire and cable industry all the time.

Therefore, the industry strongly appeals to eliminate these obstacles to the progress of the wire and cable industry as soon as possible. On the contrary, it will hinder China's transformation from a large cable country to a strong cable country, from a speed type to a quality type.

At present, China's wire and cable industry is at the crossroads of transformation. Innovation of business model, adjustment of industrial organization structure and brand cultivation are all the breakthrough points for transformation and upgrading of wire and cable industry.

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