Wire and cable industry is an important supporting industry in China’s economic construction. It provides infrastructure for the power industry and communication industry, accounting for a quarter of the output value of China’s electrical industry. It is the second largest industry in the mechanical industry after the automobile industry, and plays an important role in the national economy. With the recent adoption of the policy of “stable growth and structural adjustment”, the economic growth rate will decline compared with the past, but structural adjustment is conducive to long-term development and also a necessary way for China’s development. In the first quarter of 2014, global growth slowed down more than expected, and the annual growth rate fell to 2.75% from 3.75% in the second half of 2013. Despite better than expected economic performance in some countries (Japan as well as Germany, Spain and the UK), growth has declined due to the overall weakness of the global economy.
Among them, the main reason for the decline in global economic growth is the adjustment of the United States and China, the two largest economies in the world. In the United States, inventory overstocking at the end of 2013 exceeded expectations, leading to stronger adjustments. Demand was further constrained by the harsh winter, with exports falling sharply after strong growth in the fourth quarter and output contracting in the first quarter of 2014. In China, domestic demand slowed down more than expected because of efforts to control credit growth and the adjustment of the real estate industry. In addition, economic activity in other emerging markets, such as Russia, slowed sharply, as regional political tensions further weakened demand.
In the second half of this year, China adopted effective and targeted policies and measures to support economic activities, including tax relief for small and medium-sized enterprises, acceleration of financial and infrastructure expenditures, and targeted underground adjustment of reserve ratio. Growth is expected to be 7.4% in 2014. Next year, GDP is expected to be 7.1% as the economy transitions to a more sustainable growth path and declines further.
China’s cable industry has been affected by the sluggish external economic development, and the domestic GDP has also been reduced to 7.4% from the 7.5% expected at the beginning of the year. The growth of cable industry in 2014 will be slightly lower than that of the previous year. According to the latest express statistics of the National Bureau of statistics, the main business income of the wire and cable industry (excluding optical fiber and cable) increased by 5.97% year on year from January to July 2014, and the total profit increased by 13.98% year on year. From January to July, the import amount of wires and cables decreased by 5.44% year on year, and the export amount increased by 17.85% year on year.
China’s cable industry has also entered a stable development period from a high-speed development period. During this period, the cable industry must also follow the pace of the times, accelerate the adjustment of product structure within the industry, the elimination of backward production capacity, and drive the development of the industry with innovation, so as to move from a large cable manufacturing country to a manufacturing power.
Post time: May-12-2020