At present, there are more than 7,000 small and medium wire and cable enterprises in China. Due to the lack of R&D capabilities, most of these companies make a fuss about low-end products. Therefore, product prices have become a magic weapon for many SMEs. As the wire and cable is a typical heavy-duty, light-weight industry, the price of raw materials accounts for 70% to 80% of the total cost. Therefore, the quality of raw materials affects the quality of wire and cable products to a great extent. The reason why small companies can provide ultra-low-cost products is nothing more than making a fuss about raw materials. The quality of products can be imagined. In the recent period of continuous high copper prices, some companies have already appeared to be sub-filled.

Experts pointed out that although substantial price hikes in raw materials have made many companies struggling, this has also provided an excellent opportunity for the wire and cable industry to shuffle. At present, the pattern of the cable industry has undergone significant changes. Many small enterprises have been forced to dismantle. The state-owned enterprises have gradually retreated to the second line due to the system's drawbacks and excessive historical burdens. Private enterprises have become the protagonists of the wire and cable industry.

The market is optimistic about the integration. In recent years, China has built tens of millions of kilometers of national power and communication networks, extending from the central metropolis to remote small villages. Therefore, the demand for cables is enormous. Experts pointed out that the rapid development in recent years has made China's wire and cable industry's production capacity much higher than the demand, and the utilization rate of equipment is only 30% to 40%. In the coming period, the main task of the wire and cable industry will be mergers and reorganizations.

At present, the repeated investment in the wire and cable industry and the blind follow-up phenomenon are very serious. For example, when urban and rural power grids are transformed, many companies produce overhead conductors and cross-linked cables. When developing high-tech products, many companies vigorously produce high-voltage cross-linked power cables. And fiber optic cables; many companies are now flocking to automotive cables. These phenomena, ignoring the conditions and making a leap forward, have caused the oversupply of certain products and increasingly fierce market competition.