As China's wire and cable industry, which is marching from a "cable power" to a "cable power", how to create a new business model for the industry and promote the transformation and development of the wire and cable industry has become a difficult problem that needs to be broken through.

On May 10 this year, Xi Jinping, general secretary of the Central Committee of the Communist Party of China, proposed to "promote the transformation of Chinese manufacturing to Chinese creation, Chinese speed to Chinese quality, and Chinese products to Chinese brands" when inspecting industrial enterprises in Henan Province. The spirit of this instruction will become a powerful driving force to accelerate the transformation and upgrading of China's wire and cable industry. In the future, while attaching importance to innovation and brand building, the top priority of the whole industry is to fundamentally and thoroughly solve the problem of transforming from "speed" to "quality".

The cable industry has developed rapidly

As we all know, the wire and cable industry is known as the "blood vessels" and "nerves" of the national economy, since the founding of our country, especially since the reform and opening up, China's economy has developed rapidly, the demand for power construction is strong, and the wire and cable industry has developed rapidly on the train of China's rapid economic development.

According to the data, as of the end of 2013, China's wire and cable industry has achieved an annual output value of more than one trillion yuan. At present, in the world, China has also surpassed the United States, becoming the world's largest cable producer, and the second largest industry after China's automotive industry. It took China more than 60 years to complete the road that developed countries have traveled for more than 100 years. China's wire and cable industry has made significant contributions to the development of the national economy and scientific and technological progress, as well as the world economy, which has attracted the attention of the world.

However, in the process of sustainable development, China's wire and cable industry is encountering various fetters and troubles from many aspects.

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

Looking at the current situation of the entire industry, the current industrial concentration of China's wire and cable industry is not high, and it has failed to form a large-scale effect; The weak ability of scientific and technological innovation is still the "soft underbelly" of the wire and cable industry, and the "new products" of wire and cable launched by some enterprises are still mostly following the trend; There is still a long way to go in technological innovation in the wire and cable industry.

Especially compared with the scale and speed of development, the overall quality of China's wire and cable products is obviously a big "short board". The most prominent and headache for people in the industry is the "artificial destruction" of product quality.

For a period of time, in the pursuit of high speed, high growth of the macro background, the wire and cable industry policy constraints and guidance is obviously lacking, market supervision is not enough, the industry self-discipline is not strong, resulting in blind expansion of investment, serious overcapacity. Due to the "more monks and less porridge", the wind of low-price competition between enterprises is not uncommon, counterfeit and shoddy products are rampant, and the "shallow rules" of the industry are intensifying, gradually forming a "negative energy" that affects national property and the safety of people's lives and seriously hinders the healthy and sustainable development of China's wire and cable industry.

In recent years, government departments at all levels have accelerated the elimination of backward production capacity, regulatory departments have vigorously promoted quality improvement projects, industry associations have taken various measures such as price supervision to standardize market business behavior, and some super large users are also changing the bidding rules for winning bids at the lowest price, and the "positive energy" of some outstanding enterprises is consciously resisting the erosion of "negative energy".

After many efforts, it has basically formed a "combination punch" of all-round encirclement and suppression of "negative energy", and the industry has also seen the hope of the wire and cable industry and the market field to move towards the rule of law.

However, due to the strong concealment, complexity, and stubbornness of some "negative energy", the current chaotic situation in the market has not been fundamentally curbed, and there is still a long way to go to standardize market behavior.

In fact, "negative energy" is like a parasite that sucks the energy of the wire and cable industry all the time, and it is not just a simple quality problem, but endangers the larger scope of law, morality and integrity.

Accordingly, the industry strongly calls for the removal of these stumbling blocks on the way forward of the wire and cable industry as soon as possible. On the contrary, it will inevitably hinder the process of China's transformation from a cable country to a cable power, and from speed to quality.

At present, China's wire and cable industry has been at the "crossroads" of transformation, business model innovation, industrial organization structure adjustment, and brand cultivation, etc., are the breakthrough of the transformation and upgrading of the cable industry.

Industry experts believe that the relevant government departments should prohibit ordinary cable projects except for necessary high-tech and high-end projects while speeding up the elimination of backward production capacity, so as to block the further expansion of the industry's production capacity and scale from the source; The relevant regulatory authorities should hold high the sword of the rule of law, set up a high-voltage line and the bottom line of supervision, establish an exit mechanism for non-performing enterprises, adopt a zero-tolerance attitude towards counterfeit and shoddy, malicious low-price bidding and other violations of laws and regulations, and resolutely order the withdrawal once discovered, and must make the illegal enterprises pay a heavy price and not give them the opportunity to make mistakes again.

More importantly, the wire and cable industry association should strengthen the in-depth research of enterprises and markets, and provide scientific basis for the relevant government departments in a timely manner in solving overcapacity and making market supervision decisions. In addition, it is necessary to further strengthen the self-discipline of the industry and guide the industry to continue to develop healthily along the track of standardization, legal system, and integrity.

At the same time, the majority of wire and cable manufacturers, especially the backbone enterprises, should take the overall interests of the industry as their own responsibility, take the initiative to assume and consciously fulfill the main responsibility of quality, resolutely resist any form of quality discounting, and actively condense the strong positive energy of the industry, and strive to cultivate and build a new force in the wire and cable industry from speed to quality, and make positive contributions to the sustainable and healthy development of China's cable industry.