When is the end of vicious competition in China's low-end cable market?

In recent years, incidents caused by substandard cable products have become increasingly common, posing serious risks to people's lives and property. The fire hazards associated with poor-quality cables have drawn significant attention from national quality supervision authorities. Many stakeholders have urged the cable industry to "stay clean and be happy," emphasizing responsibility toward users and focusing on quality improvement. Through random inspections across different regions, authorities have cracked down on illegal production companies, aiming to eliminate unsafe practices. Although each random inspection often reveals that a few manufacturers produce substandard cables, the number is typically small, and the situation remains largely "reporting good news but not bad." This is understandable given that many cable manufacturers contribute significantly to local GDP, leading to some degree of local protectionism. In some cases, unqualified products still reach the market through bribes or manipulation of local quality inspection departments, causing frustration among consumers. The reason why some cable companies misrepresent their products during spot checks lies in the market dynamics. Currently, the domestic wire and cable market is plagued by chaos, with widespread issues such as counterfeiting, shoddy workmanship, and cost-cutting. During a recent visit to the market, it was observed that many low-priced cables are actually substandard, yet they continue to sell well due to their affordability. This phenomenon persists because of the informal "low-cost competition" rules within the industry. Consumers tend to favor cheaper options, even if the quality is questionable. Many procurement companies are aware of the poor quality of certain cables but still choose to purchase them, as these products usually function without issues in the short term. Problems often arise only after years of use, when aging or other conditions cause failures—sometimes leading to severe consequences like fires. Despite China's wire and cable industry surpassing the United States to become the world’s largest manufacturer, with the biggest consumer base and the fastest-growing market, the sector still faces urgent challenges in addressing market disorder. If left unchecked, the industry may remain "big but not strong," which is detrimental to long-term development. As a critical supporting industry for the national economy, the cable sector plays a vital role in various sectors, including urban infrastructure, energy, transportation, and smart grids. Although cables may seem unobtrusive, they can determine the success or failure of major projects and must not be overlooked. During the "Twelfth Five-Year Plan," various industries in China experienced rapid growth. Urbanization accelerated, urban rail systems expanded, new energy projects advanced, and shipbuilding and aviation developed quickly. The push for smart grid construction and the implementation of ultra-high voltage (UHV) projects created substantial demand for wire and cable products. Data indicates that China's wire and cable industry will continue to grow at a faster rate than the national economy, highlighting its importance in the country's future development.

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