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China's fiber optic cable industry is still expanding its consumer market

[Abstract]:
From the overcapacity to the shortage of capacity, the fiber optic cable industry in China experienced a quantum leap in 2015. The state continues to promote "triple play", "broadband China"...
From the overcapacity to the shortage of capacity, the fiber optic cable industry in China experienced a quantum leap in 2015. The state continues to promote "triple play", "broadband China" and "Internet +". Under the guidance of various policies, it can be predicted that the consumer market of China's optical fiber and cable industry is still expanding.
 
In 2015, the demand for China's optical fiber and cable market continued to be strong. It is expected that total market demand will reach 200 million core kilometers this year, accounting for more than 55% of the global market. In addition, due to the insufficient production capacity of preforms in China and the success of anti-dumping on preforms originating in the United States and Japan, imports have decreased, and domestic fiber optic cables and related products have experienced insufficient production capacity.
 
Looking from the future market, there is still a lot of room for growth in China and the global market. At present, China's fixed-line broadband penetration rate has exceeded the global average, but compared with developed countries, there are still gaps, and has not yet reached the development line of broadband China strategy. The level of communication between rural and western regions in China is still very low.
 
In addition, the "Belt and Road" strategy will bring great opportunities for the internationalization of China's optical fiber and cable industry. The current market in the United States and Europe is relatively mature, but it is still smaller than China. The Chinese government attaches great importance to "Internet +" and plans to invest 1.14 trillion yuan in the next three years. In addition, in the centralized procurement of China Mobile's optical fiber and cable that will be launched soon, the amount of optical fiber is close to 100 million kilometers. China Mobile's purchase volume of a company accounts for 30% of the world's total, which exceeds the current total of North America and Europe. It can be seen that the Chinese government’s determination and efforts are great, which is favorable for the optical fiber and cable industry.
 
With respect to smart manufacturing, the integration of a new generation of information technology and manufacturing is initiating industrial changes and the formation of new production methods, industrial forms, business models, and economic growth points. In addition, the level of optical communication in Africa, Southeast Asia and other regions is still lagging behind, and there is great potential for future growth in construction demand. Globally, Chinese companies will completely change the global structure of the fiber optic cable industry and play a more important role. The Chinese market will become the most important market in the world.
 
At the same time, the current supply shortage in the Chinese market, anti-dumping in this context will play an important role in the industry for the next 5-10 years. Although our existing preform technology is relatively advanced in the world, it is not yet the most advanced, especially on VAD and OVD. There is a considerable gap between China and the rest of the world. However, the preform is the most profitable link in the optical fiber and cable industry. After the anti-dumping, the domestic precast production companies have the incentive to continue research and development, which can catch up with the world's advanced level in the production of rod technology.