In recent years, incidents caused by substandard cable products have become increasingly common, posing serious threats to public safety and property. The fire hazards associated with poor-quality cables have drawn significant attention from national quality supervision authorities, prompting calls for the cable industry to adopt a more responsible approach. Through random inspections across different regions, many companies found to be violating regulations have faced severe consequences.
Although each inspection often reveals some unqualified products, the number is usually small, and the situation remains one of "reporting good news but not bad." It's understandable that local governments protect cable manufacturers due to their contribution to GDP growth. In some cases, unqualified cables are allowed into the market through bribery or manipulation of local inspection departments, leaving consumers frustrated and uneasy.
The root cause of such issues lies in the market itself. The domestic wire and cable sector is plagued by chaos, with widespread instances of fake, shoddy, and low-quality products. During a recent visit to the market, it was observed that many cheap cables are sold despite being substandard, yet they still enjoy strong demand.
This phenomenon is driven by an unspoken rule of "low-cost competition," where cheaper cables attract buyers. Many procurement companies are aware of the quality issues but still purchase them, as problems rarely arise immediately. It's only after years of use—when aging or other conditions occur—that failures like fires may occur.
Despite China's wire and cable industry surpassing the U.S. to become the world's largest manufacturer, the market remains highly disordered. If left unchecked, this could maintain a "big but not strong" status, which is detrimental to long-term development. As a critical supporting industry for national infrastructure, cable systems play a vital role in construction projects, even if they remain invisible to the public.
During the 12th Five-Year Plan period, various sectors saw rapid development, including urbanization, rail transit, new energy, and smart grid initiatives. These developments created a massive demand for cables. With GDP growth expected to exceed 7% over the next decade, and the total GDP reaching around 51 trillion RMB by 2020, the wire and cable industry is set for continued expansion.
Historically, the industry's output growth has outpaced GDP by 10–15%. By 2020, the sector's output value is estimated to exceed 3 trillion RMB. While irradiated cables currently make up a small portion of the market, rising environmental awareness and technological progress are driving demand for high-performance, eco-friendly products.
However, the industry faces challenges, including overcapacity, price wars, and a lack of innovation. Foreign players like Nexans, Prysmian, and General Cable have captured the high-end market, forcing domestic firms into lower margins. This has led to a vicious cycle of poor competition, reduced profits, and limited investment in R&D.
Yet, the market is evolving. Regulations in cities like Beijing and Shanghai now restrict the use of PVC cables in key buildings, promoting safer alternatives. Internationally, the ROHS directive has pushed for greener solutions. Fire-retardant cables are now required in multiple sectors, signaling a shift toward higher standards.
For domestic manufacturers, the message is clear: without innovation and a focus on quality, they risk being left behind. As government oversight increases and regulations tighten, the market will become more standardized. Companies that fail to adapt may face elimination, while those that embrace change will lead the way forward.
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