Large but not strong, overcapacity, product homogeneity, disorderly competition is the current situation of China's wire and cable industry. In order to change this situation and achieve sustainable development of enterprises, transformation and upgrading has become the only way for industry development.
Insufficient supply of high-end cables
Cable industry is the largest industry in China's machinery industry in terms of sales revenue besides automobiles. Last year, the industry's sales revenue exceeded 110 billion yuan. But it is also the industry with the fiercest vicious competition and chaotic market order.
At present, the competition of low-end products in cable industry is fierce, while the production capacity and supply of high-end products are far from meeting the market demand. It is understood that China imported more than 6 billion US dollars of high-end cable products last year.
"This is mainly due to technical reasons can not meet the technical requirements of high-end cable products, the current domestic high-end cable market is mostly occupied by Nixon, Prysmann and other foreign enterprises." Jiang Huajun told reporters.
He explained, "China's aerospace, high-end electrical equipment and other fields have high requirements for cable products, to ensure the cable's data communication and transmission capacity in the use process.
Consumers and customers in related fields are increasingly demanding the quality of cable products. Price is no longer the only preferred condition. At the same time, Jiang Huajun believes that "the scale of enterprises in statistics is quite different from that in 2011. In the past few years, the output value of Enterprises above the scale is basically 5 million yuan. Now enterprises with output value above 20 million yuan can be classified as scale enterprises.
"We judge that after three to five years of integration, the number of small wire and cable enterprises with annual output value of less than 100 million yuan will gradually decrease." Mao Qingchuan, chief engineer of Shanghai Cable Research Institute, said that the situation of China's cable industry in disorder will gradually improve in the future, but it will take a long time. Compared with the cable manufacturing industry in North America, Europe and Japan, there is still a big gap.
Transition and Upgrading "Crossroads"
As the blood vessel and nerve of the national economy, the cable industry is facing pressure and challenges both from the outside world and from the industry itself. The cable industry has reached the stage of transformation and upgrading which must be reformed, innovated and upgraded.
For domestic cable enterprises, how to transform and upgrade, and how to create a new business model of the industry, has become a problem that industry enterprises need to reflect on.
He Xiaolong, Director of Quality Management Department of Science and Technology Department of the Ministry of Industry and Information Technology, said that technological updates in China's cable industry are slow and disruptive technologies are still few. There is still much work to be done in promoting transformation and upgrading, including innovation of business models, adjustment of industrial organizational structure, and brand cultivation, which are all breakthroughs in upgrading the cable industry.



Jiang Huajun believes that the overall direction of transformation and upgrading of the cable industry should be from the low end of the value chain to the middle and high end of the value chain, from the input-driven resources to innovation-driven, from cost competition to quality technology brand service competition.



"Strengthen and refine the domestic cable enterprises and make famous domestic brands, so that our products not only have a domestic market, but also a global market, which is the fundamental way for China's cable industry to become bigger and stronger." Jiang Huajun said that in particular, we should start from the following aspects. First of all, to achieve high-end cable manufacturing, focusing on research and development, design, standards, marketing network, brand and so on. Secondly, we should have an internationalization strategy to tap the existing and potential markets in the Middle East, Europe and Southeast Asia.