China's Optical Cables Need to Accelerate the "Going Out" Step

The China Communications Optical Cable Industry Summit was held on November 2 in Wuhan, Hubei Province. Facing the increasingly severe situation of China's optical fiber and cable market, increasing the pace of international market development and accelerating the pace of “going out” has become an important measure for China’s optoelectronic cable companies to face challenges.

After years of hard work, China's optoelectronic cable industry has gradually grown and achieved brilliant achievements. It has formed a complete industrial chain and has become a global fiber optic cable manufacturing center. The strength of product R&D has also been significantly improved, market position has been greatly enhanced, and market share has continued to increase. The domestic optical fiber market share exceeds 70%, and the influence of overseas brands is also rising. The achievement of these achievements is inextricably linked with the rapid development of China's information and communication industry and the struggle and struggle of China's optical fiber and cable. Despite this, China's optical fiber cable industry is also facing a very serious market situation. First of all, there is a serious overcapacity of optical fiber and cable. According to statistics, this year's overcapacity will reach 50%, which will lead to a continuous decline in the price of optical fiber and cable, and the profitability of enterprises will be greatly reduced. Second, the supply of core technologies and raw materials is constrained by people, leading to a large amount of corporate profits flowing overseas. Third, the lack of new product development has made it difficult for companies to further increase their competitiveness. In the face of the severe market situation, China's major fiber optic cable companies have adopted a variety of countermeasures based on the specific conditions of the company. One of the most important measures is to increase the development of the international market.

The development of the international market is considered to be the only way to absorb the excess capacity of China's optical fiber and cable. Chang Dan, CEO of Changfei, believes that at present, the imbalance in the development of optical fiber networks in different regions of the world signals a greater market space. Chinese enterprises should aim at the Asia-Pacific market with dense population distribution and potential markets such as Brazil, Russia, India, South Africa, and South America, and seize the opportunities for the development of the global information industry. Xu Jianzhong, vice president of Fortis Group, believes that Fortis has invested in Japan through international cooperation, built factories in Thailand, and increased the internationalization of export efforts is a successful attempt. Gao Anmin, chairman of Hengtong Optoelectronics, also believes that China's optical fiber and cable companies have formed a complete industrial chain and a large enough scale, coupled with the enhancement of technology and management capabilities, the strengthening of international concepts and personnel training, and the current “fiber optic cable companies in China” “going out.” The timing and conditions are ripe. Hengtong has also made many successful attempts in various forms such as “borrowing to sea” and “shipbuilding to sea”.

Entrepreneurs generally believe that although the internationalization of China's fiber optic cable industry faces many challenges, internationalization is an inevitable choice for all companies to become bigger and stronger. All companies must unremittingly advance the pace of internationalization based on the actual conditions, broaden their horizons, innovate their ideas, and strive to exert their advantages in the future. In addition, enterprises should also strengthen cooperation in the process of internationalization and jointly open up a new phase of China's optical fiber and cable industry.