As early as 2011 the annual output value of our Wire and cable industry were more than a trillion CNY, becoming the world's largest wire and cable producer, but also an importing cable power in the world. Our wire and cable industry is big but not strong.
the reason why China is a producer and importer is due to the rapid development of China's economy, the increasing demand for cable, and the insufficient production capacity of high-end cables and special cables, so the total China's cable imports in recent years has maintained a growth trend, but the growth rate is smaller year by year.
Import and export showed a good momentum mainly from the following factors: (1) for the big trend, the sustained growth of the world economy and the international trade; (2)Under the background of the fourth round of international industry transfer, international manufacturing transferred to China quickly, a batch of high technical content of wire and cable products formed the production capacity, injecting new vitality for expanding export, promoting the improvement of the export product structure;(3) the Chinese government has formulated policies and measures to support mechanical and electrical products export, the foreign trade right for self-supported production enterprises is widening.
At the same time, the industry is facing unfavorable factors for imports and exports, mainly includes the following several aspects: (1)from the United States, the more and more anti-dumping, technical barriers, intellectual property rights friction from the European Union and other countries; (2)China's export tax rebates affect corporate profits and the production cost; (3)the domestic Labor costs, will also affect this year's exports; (4)the recent overall weak of foreign trade; (5) the export product quality problems.
Wire and cable industry in China faces some problems in the import and export business, the main problems and related suggestions are as follows: first the exchange rate changes can cause changes in import and export commodities prices. The delivery price of Wire and cable industry is generally the contract price, since there is a certain time interval between the signed contract and the goods delivered, the whole process will have a currency risk. Reducing or avoiding exchange rate risk generally have the following ways: (1) improve product added value, implement flexible management strategy, avoid or eliminate the exchange rate risk. (2) the effective use of foreign exchange market and a variety of financial derivatives of financial market, to prevent and dissolve the exchange rate risk, such as trade finance; Financial instrument method, using the hedging transactions. (3) Set up the exchange rate risk early warning and management mechanism, to prevent and dissolve the currency risk.