The "12th Five Year Plan" for the development of the wire and cable industry, compiled and organized by the Wire and Cable Branch of the China Electrical Equipment Industry Association, pointed out in the relevant content that maintaining stable economic growth in the industry, improving the quality and efficiency of development; Promote energy conservation and emission reduction, green environmental protection, and low-carbon economy in the industry. During the 12th Five Year Plan period, the industry's sales scale will grow by 6-8% annually. But now it seems that this sales scale is far from reaching. The rapid contraction of the market growth rate in China's wire and cable industry has greatly affected the production and operation status of every enterprise in the industry, as well as the business strategy of every enterprise in the industry.

In the current situation of significant changes in the external environment, there are often voices in the market this year that a certain cable company has been forced to go bankrupt. However, there are also voices that can be heard. The fierce competition in the industry in the past two years has brought excellent opportunities for mergers and reorganizations of the entire industry, and provided a rare opportunity for the reshuffle of the entire wire and cable industry

In the past two years, the decline in economic growth in China and even the world has affected the decline in the growth rate of the wire and cable industry in China and even the whole world, bringing great changes to the external development environment of Chinese wire and cable industry enterprises. At the same time, the total industrial output value of China's wire and cable industry has dropped from over 20% in previous years to around 10%, indicating a significant decline in industry growth rate. All of these can be seen from the development and growth of the wire and cable industry from 2014 to 2022, and the growth of the wire and cable industry is closely related to the overall growth rate of China's industry.

At the same time, China's wire and cable industry is an industry with over 7800 various wire and cable enterprises, mainly consisting of small and medium-sized enterprises. The largest enterprise only holds a market share of 1% -2.5%. For example, companies like Far East Cable, which have been China's top wire and cable manufacturers for over a decade, have an annual output value of only over 10 billion yuan. In the trillion dollar Chinese wire and cable market, they only have a market share of just over 1%. Even the top wire and cable enterprise in China is like this, and there are also other small and medium-sized wire and cable enterprises, whose market share is pitifully small. The reason why there are numerous wire and cable enterprises in China is related to their low entry barriers. Ordinary wire and cable technology has low content and almost no entry barriers; The supply of ordinary cables in the wire and cable industry is surplus, and the production capacity has greatly exceeded market demand; The industry concentration is low, and most small-scale enterprises rely on unfair means to engage in disorderly competition, resulting in extremely fierce industry competition; The degree of product differentiation is small, and the marketing methods are not significantly different, resulting in fierce price competition.