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In recent years, the Chinese wire and cable industry has been undergoing a significant transformation, driven by an industry standard jointly developed by a U.S. cable company and an independent Chinese agency. This move is pushing the massive Chinese market into what many call the “standard era.†With over 7,000 local companies operating in the sector, some are questioning whether this shift will put them at a disadvantage from the start.
July 2013 marked a turning point for the industry. One of the most notable events was the acquisition of Baosheng Group, a leading state-owned cable manufacturer in Nanjing, by China Aviation Industry Corporation. The move sparked widespread discussion within the industry, with many wondering if this signaled the beginning of a long-awaited consolidation in a market historically known for its fragmentation, lack of regulation, and low-quality products.
While these discussions were still ongoing, a series of “security and innovation†forums began taking place across major Chinese cities—Tianjin, Hangzhou, Guangzhou, and Xi’an—soon to expand to Zhengzhou, Kunming, and Changsha. These events brought together experts, scholars, and industry professionals to discuss the future of the sector. What surprised many was that the organizer of these high-profile forums was not a local player or an industry association, but a foreign company: General Cable, a U.S.-based firm that had only recently entered the Chinese market.
Headquartered in Highland Heights, Kentucky, General Cable has a long history of manufacturing copper, aluminum, and fiber optic cables for energy, industrial, and communications sectors. It’s a global leader with a $6 billion revenue in 2012, significantly outpacing even the largest Chinese cable firms like Far East and Shanghai. However, despite its global reputation, many in China were unfamiliar with the brand.
The reason? General Cable entered the Chinese market relatively late, through an acquisition of Alcan Cable in North America. By 2012, it had successfully positioned itself in the world's largest cable market, which exceeded 1.2 trillion yuan in value and accounted for about one-third of the global total.
This raises a key question: why would a global giant like General Cable invest so heavily in forums and standards development in China, rather than simply selling its high-end products? Some believe it’s not just about profit—it’s about influence. The company is now shaping the future of the industry through standardization efforts.
One such example is the newly drafted “Rated Energy 0.6/1kV Aluminum Alloy Conductor XLPE Insulated Cable†standard, co-developed by General Cable and the Shanghai Cable Research Institute. According to Chen Kun, director of the China Wire and Cable Industry Standards Committee, this standard is critical for product evaluation, quality control, and market regulation.
For many in the industry, this is both a challenge and an opportunity. Historically, China has often adopted foreign standards, sometimes at the expense of domestic competitiveness. The saying “Third-rate enterprises make products, second-rate make brands, first-rate make standards†reflects this dynamic. But now, with General Cable playing a key role in setting the rules, the balance of power may be shifting.
China’s cable market has long struggled with overcapacity, low profit margins, and fierce price competition. With over 7,000 companies vying for market share, many are stuck in a race to the bottom. However, there’s a new frontier emerging: aluminum alloy cables.
Aluminum alloy cables, which use aluminum instead of copper as conductors, offer better performance in terms of flexibility, corrosion resistance, and weight, while being more cost-effective. They’ve been widely used in North America for decades without safety issues. In contrast, China’s market remains dominated by copper cables, with less than 10% adoption of aluminum-based solutions.
With rising copper prices and limited reserves, China is increasingly looking to aluminum as a viable alternative. This shift is creating a new “blue ocean†in the market, where early movers can gain a competitive edge.
General Cable, with its advanced manufacturing capabilities, established brand, and strategic push for industry standards, is well-positioned to capitalize on this trend. As the company continues to expand its presence in China, it’s clear that it’s not just entering the market—it’s shaping its future.