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China’s Cable and Wire Industry Is Big but Not Strong, In Need for Renovation

Date:2015-09-01 06:11:26

Some companies offer unreliable and low quality and do shoddy work, causing big risks in aspects of safety, environmental protection and health; industrial competition is not normative and companies over-expand in disorder, causing the industry being big but not strong…all information shows that China’s cable and wire industry, with its overall scale, production volume and growth speed on top in the world for many continuous years, is undergoing a key point for adjustment, standard and enhancement. The Guidance Opinion on Promoting the Enhancement of Cable and Wire Product Quality (hereinafter referred to as “Opinion”), jointly issued by AQSIQ (General Administration of Quality Supervision), the Ministry of Industry and Information Technology and related industries and industry associations, was publicized on the AQSIQ website today, attracting media attention. The core spirit of the Opinion is to enhance the general level of China’s cable and wire products through comprehensive renovation such as product quality supervision, industry policy restraint and guidance, so as to promote the sustainable and sound development of the industry which is called as the “blood vessel” and “nerve” of national economy. Cable and wire industry is an important basic industry of national economy and the quality of products in this industry directly affects social and economic development and close interests of people. With the rapid growth of China’s economy and the further acceleration of industrialization and urbanization process, China’s cable and wire industry develops rapidly. Being the second largest industry second to automobile manufacturing industry in electrical appliance industry, cable and wire industry has an annual output value of more than RMB 900 billion. China’s cable and wire industry has a significant effect on the world’s cable and wire manufacturing industry. However, as shown by the result of joint random supervision towards the quality of national cable and wire products issued by AQSIQ at the beginning of this month, the qualification rate of 88.4% of three kinds of cable and wire products (such as PVC cables) with huge usage amount and wide range of application are at a quality level far lower than that of China’s other key industrial products with good quality over the years. Among which, products in some provinces and cities are even having a qualification rate of lower than 60%. Though China’s scale and output of cable and wire industry is on top in the world, high-end products such as aerospace, nuclear power, electronics, automotive wiring harness and high-voltage super-clean cable materials are mainly imported. As shown by another investigation carried by AQSIQ and the above mentioned random inspection, above 90% of China’s cable industry is currently concentrated on low-end products. There’s a severe phenomenon of same-quality products and the medium and low-end market competition is deteriorated. There are about 5,000 state-owned and above designated sized companies in cable industry, but only 19 large companies covering about 11% of the national market share. Nearly 97% are medium and small sized companies, which always sacrifice quality and safety for market share. As pointed out by the Opinion jointly issued six parties including AQSIQ, there is a huge gap between China’s cable and wire industry’s development level and its important position. The overall quality level of China’s cable and wire products are not high and the qualification rate checked by product quality inspection is at a low level for a long period of time. The product quality of medium and small sized companies is volatile and some companies don’t have strong sense of responsibility to guarantee product quality. Illegal actions and quality-failing phenomenon such as cutting corners in work and materials and producing and selling fake goods are very prominent. Quality problem brings huge hidden danger for safety, environmental protection and health. Meanwhile, the overall output of cable and wire products is severely excessive and the utilization rate of ordinary cable and wire production equipment is less than 40%; industry concentration is not high, development aftereffect is insufficient, independent innovation ability is not enough and the homogeneous competition among low-end products is severe; industry is over-expanding in disorder and market competition is not standardized. All the problems will definitely restrict the further enhancement of cable and wire products. An official from AQSIQ said in a recent meeting that: the development achievement of cable and wire industry is impressive, but the existing problems can not be avoided. Though there are deep reasons of various aspects for the quality problem of cable and wire products, the fundamental reason is that market is in disorder and a few companies are lack of business integrity. According to the Opinion, the principle to enhance quality is government to promote, market to guide, society to participate and enterprises as the main body, so as to establish and implement a comprehensive, efficient and long-term renovation mechanism for cable and wire product quality. Through the implementation of corporate responsibility for quality and safety, improvement of industry policy constraints, optimization of industry structure, improvement of market competition environment and strengthening of quality integrity construction, China can further enhance the level of company self-discipline on quality, government supervision, industry development and overall product quality.


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