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A Summary of the Internationalization of China's Fiber Optic Cable Industry

August 03, 2023

After the "severe winter" of optical communication, from the end of 2004, along with the "spring" of the entire optical communication industry gradually entering recovery, the fiber optic cable industry has gradually stepped out of the trough and entered a basically normal development track. In 2005, China produced and sold 17.5 million core kilometers of optical cable, accounting for nearly 30% of global production, ranking first in the world. China has become one of the major production bases of fiber optic cables in the world. In 2006, the national production and sales of optical cables reached 20 million core kilometers. Among them, Changfei 4.6 million core kilometers, Hengtong 4.08 million core kilometers, bonfire 2.8 million core kilometers, Zhongtian, Tongguang, Yongding, Aoxing are up to 1.5 million core kilometers, Chengkang, Futong, Huiyuan, special hair Both are over 1 million core kilometers. In particular, in 2006, there were 8 kinds of optical cable products such as Changfei, Hengtong, Tongguang, Fenghuo, Zhongtian, Yongding, Futong and Tongding, which were rated as China's famous brand products, reflecting the independence of China's optical cable industry. The innovation has made gratifying progress, marking that China's fiber optic cable industry has reached a new level.

However, we should also see that the production capacity and market demand of China's fiber optic cable are still not coordinated, and the production capacity is far higher than the current market demand. Although the number of optical cable production enterprises in China has been reduced from more than 200 at the peak of the peak to about 50, the industrial concentration has been greatly improved, but the production capacity is still far higher than the market demand. Some experts estimate that by the end of 2006, China's fiber production capacity has exceeded 40 million kilometers, greatly exceeding market demand. The capacity of fiber optic cable manufacturers is about three times the market demand. This is also one of the important reasons for the long-term downturn in the price of fiber optic cable in China. Oversupply makes the market competition extremely fierce. Due to lack of market norms and rational and orderly competition, optical cable companies can only be forced to adopt price reduction methods to cope with the worsening market environment, not only to the economic benefits of the entire fiber optic cable industry. Damage also affects product quality and jeopardizes the interests of network builders.

Some experts estimate that the total size of China's optical cable market does not exceed 4.5 billion yuan, and the total size of the global fiber optic cable market may reach 5 billion US dollars. Therefore, instead of carrying out “blood fights” in the domestic market, it is better to explore the international market and find new opportunities. This is how China's fiber optic cable companies go international.

Broadly speaking, the internationalization process of China's fiber optic cable has begun in the 1980s. In the 1970s and early 1980s, there were not many units engaged in fiber optic cables in China. From material purification, rod making, wire drawing to cable-forming, from equipment development to process exploration, all rely on their own strength to finally make their own fiber. And fiber optic cable. With the acceleration of China's reform and opening up, from bar making, wire drawing to cable-forming equipment, technology and technology, it is gradually introduced. Then, Sino-foreign joint venture fiber-optic and optical cable factories are increasing year by year. Today, almost 100% of the rods, wire drawing equipment and most of the cable-forming equipment and high-end technology in China are imported from foreign professional companies. The Sino-foreign joint venture fiber and cable companies also account for most of the fiber optic cable companies in China. The quality level of fiber optic cable produced in China has reached the international advanced level, which also lays a good foundation for China's fiber optic cable products to enter the international market.

In fact, before the official entry into the international market, domestic fiber optic cable companies have experienced the “training” stage, which is international competition in the domestic market. Since the 1990s, the scale of China's optical cable network construction has expanded year by year, and the giants of international fiber optic cable have seized the Chinese market. At that time, domestic fiber optic cable companies were growing at an early stage, causing most of the initial domestic market to be captured by foreign manufacturers. Especially for optical fiber, domestic production is extremely low, and the entire market is full of foreign fiber. In the late 1990s to the 21st century, domestic fiber optic cable companies gradually matured, product quality improved rapidly, the cost was lower than that of foreign manufacturers, and there was an advantage of local after-sales service. Therefore, the market share gradually increased, and now it has occupied the domestic market. most. Especially from the anti-dumping incident of optical fiber, it can be seen that China's fiber optic cable enterprises have stood out in the international competition of this domestic market.

Since then, China has begun to export fiber optic cable to the international market, and it has a trend of increasing year by year. For example, in 2005, the country exported fiber-optic cables of 2.5 million core kilometers, and in 2006, it exported 3.6 million kilometers of fiber. Among them, Changfei Company sold more than 8 million core kilometers of fiber optic cable abroad at the end of 2006, with sales of 71.4 million US dollars. Its optical fiber products have a sales share of more than 10% in foreign markets, and it has become the world's second largest fiber manufacturer and the number one. Five major fiber optic cable manufacturers. After the "severe winter" of optical communication, from the end of 2004, along with the "spring" of the entire optical communication industry gradually entering recovery, the fiber optic cable industry has gradually stepped out of the trough and entered a basically normal development track. In 2005, China produced and sold 17.5 million core kilometers of optical cable, accounting for nearly 30% of global production, ranking first in the world. China has become one of the major production bases of fiber optic cables in the world. In 2006, the national production and sales of optical cables reached 20 million core kilometers. Among them, Changfei 4.6 million core kilometers, Hengtong 4.08 million core kilometers, bonfire 2.8 million core kilometers, Zhongtian, Tongguang, Yongding, Aoxing are up to 1.5 million core kilometers, Chengkang, Futong, Huiyuan, special hair Both are over 1 million core kilometers. In particular, in 2006, there were 8 kinds of optical cable products such as Changfei, Hengtong, Tongguang, Fenghuo, Zhongtian, Yongding, Futong and Tongding, which were rated as China's famous brand products, reflecting the independence of China's optical cable industry. The innovation has made gratifying progress, marking that China's fiber optic cable industry has reached a new level.
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