The development of wire and cable is mainly determined by the rapid growth of China's economy and the strong domestic demand. With the development of science and technology and the support of national policies, the market capacity of the wire and cable industry has surged, maintaining growth at an annual rate of more than 8%. The specific issues are as follows:

 

    1. Special cables are still in short supply. The demand for special cables in the market is increasing day by day, but domestic cable companies have little ability to undertake these market demands. China's wire and cable industry is crowded with more than 10,000 wire and cable companies, and there are only a dozen large enterprises. These dozens of large enterprises only account for more than 10% of the national market share, and nearly 97% are small and medium wire and cable companies. Judging from the distribution of the distribution centers of the enterprises, the five major production and distribution centers in China, Jiangsu, Guangdong, Zhejiang, Anhui, and Hebei, in the first two years of the sampling inspection conducted by the AQSIQ, the number of samples accounted for 63.1% of the total sample. The qualified rate of product sampling enterprises were 79.2%, 87.9%, 91.2%, 78.7%, and 81.9%, respectively; the pass rate of random inspection products was 86.0%, 89.8%, 92.8%, 86.4%, and 83.8%, respectively. More than 97% of China's cable companies' production capacity is concentrated on low-end products. Large-scale enterprises have a low market share, and their international competitiveness is not strong. There are few leading enterprises that can fully participate in global competition. The independent research and development and innovation capabilities are seriously inadequate. The investment in research and development is less than 1% of sales, and high-end products such as aerospace, nuclear power, electronics, automotive wiring harnesses, and high-voltage cable ultra-clean cable materials still rely mainly on imports. Limited by various reasons such as technical level and production scale, it has led to market gaps. Because the current special cable threshold is higher, the profit rate is higher, the competition is milder, and the special cable can meet the special environment and special occasions, so the special cable will become the "darling" of the future market.

 

    2. The price of raw materials in the wire and cable industry fluctuates greatly. It is understood that China's wire and cable market is very chaotic, especially for home improvement wires. The reason for the confusion is that there are many brands in it, the price difference is large, and the quality is also uneven.

 

    3. Low-end wire and cable supply exceeds demand. For a long time, the surface of the domestic cable industry still has many ills. Although it continues to grow in scale, most of the enterprises in the industry are shrinking, their innovation ability is backward, and they are immersed in the price war in the low-end field. The overall profit margin of the wire and cable industry is less than 5%. The pure buyer market has led to serious financial problems for cable companies, and many companies are even facing bankruptcy. Most of the enterprises have weak technical foundations, lack of professional talents, and serious product homogeneity. The low-level price competition in the low-end and mid-end markets is fierce, and product quality control and continuous improvement are weak. Not only is capacity utilization low, but industry concentration is extremely low, competition is deteriorating, and profits are meager. The utilization rate of ordinary wire and cable production equipment is only about 30%-40%, which is far lower than the level of equipment utilization rate of more than 70% in advanced countries.

 

    4. At present, foreign-funded enterprises in China's wire and cable industry account for a considerable proportion, and the advantages of foreign-funded enterprises in the high-end products market are more obvious. From the perspective of development, the demand for cable products in all walks of life will develop in the direction of high performance and high quality. If domestic enterprises want to gain a foothold in the competition of international enterprises, they must gradually reduce the performance of the products and the world. The gap between enterprises. In developed countries such as Japan and the United States, the market share of the top four wire and cable companies is over 40%. Domestic large cable companies are relatively small compared to large cable companies in developed countries in Europe.

 

    5. China's wire and cable industry is facing better development opportunities. Enterprises in the wire and cable industry should strengthen their independent innovation capabilities, increase investment in research and development of new products, and face restructuring and reshuffle. Improve the competitiveness of enterprises and further seize market share.