Wire and cable industry is an important supporting industry in China's economic construction. The products are widely used in electric power, coal, petroleum, metallurgy, communications, transportation, national defense and other fields. It is the transmission of electric energy, transmission of information and the manufacture of various motors, instruments, meters, and electromagnetics. Basic equipment that is indispensable for energy conversion is a necessary basic product in the future electrification and information society. It is the second largest industry in the machinery industry, second only to the automotive industry. It is called the “artery” and “nervous” of the national economy. ".

With the sustained and rapid growth of China's economy, the wire and cable manufacturing industry has gained a huge market space. During the “Eleventh Five-Year Plan” period, the annual output value of China's wire and cable industry has grown by an average of 26.8%. By 2011, it has surpassed the United States as the world’s largest wire and cable producer. Although the global financial crisis has had an impact on China’s economic development, with the support of the government, the recovery of the macro economy, and continued domestic demand stimulation, China’s wire and cable manufacturing industry has emerged from the downturn relatively quickly and has resumed steady growth. Taking electric cables as an example, the cumulative total output of electric cables from January to December 2012 was 40,019,727 kilometers, a year-on-year increase of 13.54%.

However, we should see that there are serious problems in the wire and cable manufacturing industry, such as the homogenization of enterprises, low concentration of the industry as a whole, and low technical content of products. In the low-end market, the price war has become the main means of competition and it has become increasingly fierce. The vicious price competition has caused the overall price of the wire and cable manufacturing industry to decline, and the industry's profit rate has declined. A large number of wire and cable manufacturers have struggled to close down.

Some enterprises have produced a large number of unqualified and counterfeit products in order to obtain profits or obtain survival. The disorder in market competition is serious, which has caused a considerable negative impact on the reputation of China's wire and cable manufacturing industry. In the high-end market, such as special cables, ultra-high voltage cables, etc., only a few large-scale state-owned enterprises in China can compete with foreign-funded enterprises. The wire and cable manufacturing industry has the characteristics of “heavy materials and light weight”, and the cost of raw material copper accounts for about 70%-80% of the operating cost of the enterprise's products. In recent years, the prices of raw materials such as copper and aluminum have undergone ups and downs, and the normal production and operation of wire and cable manufacturers There is considerable pressure. In general, although China's wire and cable manufacturing industry has developed by leaps and bounds, it is still at the mid-to-low end of the industrial chain. Its low added value and weak international competitiveness make it vulnerable to fluctuations in the prices of foreign brands and raw materials.

Difficulties have given birth to hope that the electricity, railway, rail transit, energy, and construction industries will still maintain a large scale of investment in the next five years, and will provide the wire and cable industry with room for continued growth. The “12th Five-Year Plan Rolling Research Report” of the “Power Industry” pointed out that during the “12th Five-Year Plan” period, the nation’s electricity industry investment will reach a record 6.1 trillion yuan, of which the power grid investment will be 2.9 trillion yuan, and the demand for wires and cables will be huge. At present, more than 70 subway lines are under construction throughout the country, with a total investment of more than 800 billion yuan. If we add approved projects, the investment will be more than 1.5 trillion yuan, and the demand for wire and cable is also considerable. Although China has been the fastest growing wire and cable consumer in the world, the per capita wire and cable consumption level is relatively low, about one-fifth that of developed countries and equivalent to the level of Latin American countries, and there is a huge potential for market demand.

In the new round of market feast, management level, cost control ability, product quality, brand recognition and technological innovation ability will become the key factors for enterprises to benefit from and even grow rapidly. Enterprises with smaller scale, poor bargaining power, low quality, and low management level will eventually be eliminated by the market. Enterprises that actively improve their management level, strengthen their scientific research strength, ensure product quality, and establish a good brand will be able to escape chaos. The market environment, the realization of Fenghuang Nirvana, has grown into a leading company in the wire and cable industry.

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