Recently, the Chinese version of the "Marshall Plan" that invested 4 trillion yuan overseas has attracted the attention of the world. Its core strategy is to digest domestic excess capacity through commodity export and infrastructure construction. The Chinese version of the Marshall Plan is a boon for industries with overcapacity. Under the background of the new economic normal, it has become a new trend for China's economic development to merge into the world orbit. The current capacity utilization rate of about 60% of the wire and cable industry, overcapacity is in a life-and-death period. Taking advantage of the Chinese version of the "Marshall Plan", accelerate the layout of overseas markets into the Chinese wire and cable enterprises to digest excess capacity and expand the international influence of the brand "two birds with one stone" strategy.

The Marshall Plan was a plan by which the United States provided economic assistance and reconstruction to war-damaged Western European countries after the end of World War II, and by exporting a large amount of excess capacity, the U.S. economy rebounded rapidly from the bottom of the valley. A major highlight of the Chinese version of the "Marshall Plan" is to transfer domestic excess capacity overseas through large-scale infrastructure construction.

Overcapacity has become a systematic, structural and deep-seated problem in the process of China's economic development. It is difficult for all walks of life to avoid this "stumbling block", and the wire and cable industry is no exception. A set of data provided by Zhang Ronghan, director of the equipment Industry Department of the Ministry of Industry and Information Technology, shows that in 2012, the utilization rate of ordinary wire and cable production equipment in China's wire and cable industry was generally less than 40%, and the capacity utilization rate of medium and high voltage power cables was 60%. The long-standing contradiction of overcapacity has intensified market competition, and cable companies are in dire straits, and finding new economic growth points has become their common appeal..

The Chinese version of the "Marshall Plan" has been supported both at the government level and at the academic level. "There are four new growth points in China's economy, and enterprise transformation is one of them." Li Xunlei, chief economist of Haitong Securities, said at a forum on the economic situation hosted by Premier Li Keqiang on November 3 that if the original enterprise was mainly for domestic sales, it can now increase exports, and if exports can be expanded, it will help to digest its excess capacity.

In fact, many well-known domestic cable companies have not stopped catching up with the world.

As the leader of China's wire and cable industry, Jiang Xipei, chairman of the board of directors of Far East Holding Group, said in an interview with reporters that all walks of life will follow the laws of the market and economy. At present, when the Chinese economy reaches this scale, it is indeed more internationalized. Need to be transferred or transformed.

"When Chinese enterprises develop to a certain stage, it is inevitable to go out. If they do not go out, they will encounter the 'ceiling', and if they go out, they will have a broad sky; if they do not set their sights on the world, their development will be limited, and only by actively participating in international market competition can they win the initiative of internationalization." Cui Genliang, chairman of the board of directors of Jiangsu Hengtong Group Co., Ltd., has always firmly believed that it is impossible to strengthen Hengtong without internationalization.

Overcapacity has become the current development of China's wire and cable industry on the road to an urgent need to solve the problem, but this is a long-term process, "protracted war" has been inevitable. Chinese wire and cable companies must work hard to practice their "internal skills", improve quality and upgrade, take the ride of the "going out" of the Chinese economy, accelerate the global layout, and expand brand influence.