It is reported that China has become one of the largest consumers of wires and cables in the world. In 2013, China's wire and cable production accounted for 26% of the world's wire and cable production, but there is still considerable room for growth. In the next decade, China's share in the high-end wire and cable market will continue to grow. However, in the process of realizing the development goal of becoming bigger and stronger, there are many industry problems to be solved.
1. The quality of wire and cable products is low, and there are many problems in the wire and cable industry, such as "winning the bid at the lowest price", "low price competition" and so on. These problems lead to our wire and cable products difficult to have international market competitiveness, domestic malicious competition and internal friction.
2. In the wire and cable market, there is a market structure in which the buyers are monopolized or highly concentrated according to the subdivided fields and the sellers are scattered, which leads to the disorder of the market and the loss of the market regulation mechanism, and it is difficult to solve the problem of optimal allocation of resources.
3. China's cable advantage enterprises concentration is low, and the instability of the industry is high. At present, there are nearly 10000 manufacturers in China's cable industry, and there are thousands of supporting industries such as equipment deployment, raw materials, semi-finished products, etc., but the concentration is very low. According to the global plastics report, China's top 10 cable companies account for only 7% - 10% of the domestic market share. Developed countries, including the United States, Japan and developed countries, account for more than 60% of their market share.
Through the implementation of the market price guidance mechanism in the wire and cable industry, government agencies help the wire and cable industry to form a relatively balanced and reasonable market governance mechanism and mode based on the market mechanism, guide the wire and cable industry market, and improve the industrial structure including pricing, service and quality, which will fundamentally solve the disadvantages of the industry. In addition, the integration of industry resources, expanding the market share of advantageous enterprises and enhancing the stability of the industry are also the recent development priorities of China's cable industry.
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