Wires and cables are an indispensable basic material for production of various kinds of motors, electric apparatuses, instruments, automobiles, machine tools, machinery and other equipment, and an essential underlying product for China to develop into a country based on information and electrization.

The wire & cable industry is also a supporting industry, and should satisfy the requirements of upstream industries. It is linked with most industries in an economy, and therefore, is called the blood vessel and nerve of an economy.

Wires & cables can be divided into five categories, including exposed wires, wires and cables for electrical equipment, power cables, communication cables and optical cables, and winding wires. In the Eleventh Five-year Plan Period between 2006 and 2010, the demand for wires and cables by various industries will be large, resulting from the electric power construction projects.

In the Eleventh Five-year Plan Period, the demand for trolley wires and power cables will increase by 10% year on year on average. However, the such demand will ease after the power grid is improved.

Noticeably, reconstruction of urban power grids is not only the business of the electric power industry, but also the working focus of local governments. In order to make cities more beautiful, local governments require to replace trolley wires with underground power cables in the downtown. This will create an enormous demand for medium- and high-voltage power cables.

In the Eleventh Five-year Plan Period, the communication cable and optical cable segment will maintain the quo status or decline somewhat. After the fast expansion in the Eighth, Ninth and Tenth Five-year Plan Periods, China’s communication industry has entered into a stable-growth period. The backbone network has basically formed, and the phone penetration rate has exceeded 46%.

After successful listings and basic establishment of backbone networks, telecom carriers will shift focus to improving service capacity with the existing resources from expanding network capacities. Therefore, metropolitan area networks and access networks will become the focus of telecom carriers.