To transform from an international participant to a leading player, Chinese wire and cable companies need to vigorously develop independent research and development, ensure superior quality, and actively participate in the international market.

Due to smog pollution, the development of ultra-high voltage (UHV) power transmission and the utilization of new energy sources became hot topics at the 2014 National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC). This further expanded the high-end market for the wire and cable industry, giving cable companies tremendous vitality and confidence. In other words, the construction and development of UHV and new energy will benefit the wire and cable supporting industries.

Therefore, during the NPC & CPPCC sessions, representatives from the cable industry pooled their wisdom to contribute to the healthy development of the wire and cable industry.

Cable television companies seized the opportunity and joined the wave of UHV construction.

In the future, China's power grid will achieve west-to-east power transmission, north-south power supply, and nationwide grid interconnection. Investment will continue to expand, bringing excellent development opportunities to UHV and extra-high voltage cable companies. Zhang Sixia, a National People's Congress representative and Chairman of the Board of Qingdao Hanhe Group Co., Ltd., stated that companies producing multi-split large-section conductors, new heat-resistant expanded-diameter conductors, low-noise conductors, UHV power cables, and UHV cross-linked cable accessories are entering a rare period of development opportunity.

During this year's Two Sessions, numerous suggestions were made regarding the development of ultra-high voltage (UHV) power grids. According to experts, the 12th Five-Year Plan period is a crucial stage for the development of my country's UHV power grid, and UHV has become a key investment area. Building upon existing UHV AC test demonstration projects, the construction of UHV AC synchronous power grids in the North China, East China, and Central China regions ("Three Chinas") should be accelerated. The goal is to establish a "three vertical, three horizontal, and one ring network" UHV power grid structure in the "Three Chinas" by 2015, and to complete 11 UHV DC transmission projects.

Zhang Sixia analyzed that with the arrival of the UHV era, as the most cutting-edge technology in power grid construction, UHV places extremely stringent requirements on cable products. Whether Chinese wire and cable companies can outperform foreign cable companies in market competition and enter the Chinese domestic UHV market remains a challenge.

In fact, Chinese wire and cable companies have made continuous breakthroughs in exploring and developing UHV cable technology, with some companies even approaching international leading levels. At the 2013 International Smart Grid Forum, China's power industry participated in the drafting of 19 international standards, including standards for AC voltage of ultra-high voltage (UHV) cables, and established a systematic technical standard system for UHV cables and smart grids.

In the current era of rapid development of UHV, how can Chinese wire and cable companies seize this rare development opportunity? Song Zhichen, an energy industry researcher at China Investment Consulting, offers a "good prescription" for domestic wire and cable companies. In Song's view, domestic wire and cable companies should start with technological research and development, while requiring industry alliances and associations to cooperate with enterprises, focusing on core technology research and development, and formulating more stringent industry standards; inter-enterprise collaboration is also indispensable. In the "boom" of UHV construction, competition between Chinese wire and cable companies and foreign giants is inevitable. Besides leveraging price advantages, more effort should be put into internal management and market influence.

With the support of product technology, "going global" will be more stable.

Chinese wire and cable companies must go global. Only by going abroad and actively participating in the international market competition environment can they achieve more stable development. The 2014 Government Work Report pointed out that the export of large-scale complete sets of equipment for communications, railways, and power plants should be encouraged to promote the international reputation of Chinese equipment. The report also outlined plans to create a new landscape of high-level opening-up, proposing to "support enterprises in building their own brands."

Constructive suggestions regarding main brands and international marketing networks were offered.

Cui Genliang, a National People's Congress deputy and chairman of the board of Jiangsu Hengtong Group Co., Ltd., stated that it is an inevitable trend for Chinese enterprises to go global after reaching a certain stage of development. If they don't go global, they will encounter a "ceiling"; if they do, they will have a vast world to explore. If they don't look to the world, their development will be limited. Only by actively participating in international market competition can they gain the initiative in internationalization.

He believes that Chinese private enterprises have strong backing and robust protection for their overseas investment rights. They should confidently go global and accelerate their integration with the international community in terms of modern enterprise systems, management concepts, and business models. Only by actively participating in global industrial market competition can enterprises truly test their competitiveness.

Bao Zhenyu, director of the testing department of the Wire and Cable Quality Supervision and Inspection Center (Jiangsu), believes that Chinese wire and cable companies must pursue internationalization and actively explore international markets. For example, at its 2014 work conference, the State Grid Corporation of China (SGCC) explicitly stated its intention to intensify its efforts in expanding overseas markets, striving for significant breakthroughs in areas such as investment and EPC (Engineering, Procurement, and Construction) contracting. This move by SGCC will not only broaden its business scope but also drive the development of upstream and downstream industries. Especially given the increasingly fierce competition and harsh environment in the current Chinese market, wire and cable companies are being forced to gradually internationalize, and the "going global" strategy may bring significant opportunities for the wire and cable industry.

Chinese wire and cable companies are highly motivated to "go global," but experts warn that they should make thorough preparations before entering international markets. These preparations include adapting to foreign standards; for example, entering the South African market requires mandatory SABS certification; entering the US market requires UL certification; and in the European market, compliance with all EU standards is necessary.

Despite the current slowdown in economic growth and the numerous challenges facing companies, including financing difficulties, talent shortages, insufficient R&D capabilities, increasingly fierce market competition, and volatile raw material prices, the future is fraught with difficulties and risks. However, Chinese wire and cable companies still need to vigorously carry out independent research and development, ensure high product quality, actively participate in international market competition, and realize the transformation from international participants to leaders.

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