Cable companies use the Chinese version of the "Marshall Plan" to accelerate their global layout
Recently, the Chinese version of the "Marshall Plan", which invested 4 trillion yuan overseas, has attracted worldwide attention. 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 excess capacity. In the context of the new economic normal, the integration of China's economic development into the world track has become a new trend. In the wire and cable industry, which currently has a capacity utilization rate of about 60%, excess capacity is in a life-and-death period. Taking advantage of the Chinese version of the "Marshall Plan", accelerating the layout of overseas markets has become a strategy of "killing two birds with one stone" for Chinese wire and cable companies to digest excess capacity and expand their brand's international influence.
The Marshall Plan was a plan for the United States to provide economic assistance and reconstruction assistance to the Western European countries damaged by the war after the end of World War II. By exporting a large amount of excess production capacity, the U.S. economy recovered rapidly from the bottom. The highlight of the Chinese version of the "Marshall Plan" is to transfer excess domestic production capacity overseas through large-scale infrastructure construction.
Overcapacity has become a systematic, structural and deep-seated problem in the current 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. According to a set of data provided by Zhang Ronghan, Director of the Reinstallation Division of the Equipment Industry Department of the Ministry of Industry and Information Technology, in 2012, the utilization rate of ordinary wire and cable production equipment in my country'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. 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 received support both at the government level and at the academic level. "There are four new growth points in China's economy, and corporate transformation is one of them." Li Xunlei, chief economist of Haitong Securities, said at a symposium on the economic situation hosted by Premier Li Keqiang on November 3, if the original enterprise mainly It is domestic sales, and now we can increase exports. 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 a leader in 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 now all walks of life will follow the laws of the market and the economy. At present, when China's economy reaches this scale, it is indeed more internationalized, to some extent need to be transferred or transformed.
"When Chinese companies develop to a certain stage, it is inevitable to go out. If they don't go out, they will encounter a 'ceiling', and if they go out, they will open up the world. If they don't focus on the world, their development will be limited. Only by actively participating in international market competition can they achieve success. Win the initiative of internationalization." Cui Genliang, Chairman of the Board of Directors of Jiangsu Hengtong Group Co., Ltd. has always firmly believed that making Hengtong stronger will definitely not be possible without internationalization.
Overcapacity has become an urgent problem to be solved on the current development path of China's wire and cable industry, but this is a long-term process, and a "protracted war" is inevitable. Chinese wire and cable companies must practice "internal skills" hard, improve quality and upgrade, and ride on the "going out" of China's economy, accelerate globalization, and expand brand influence.