There are several ways for cable companies to go global

At present, overcapacity has become a serious problem plaguing the development of the power industry, and "going out" has become an urgent need
for power including cable enterprises.
After decades of development, China's electrical equipment industry has led the world in a variety of power generation technologies, and UHV transmission and transformation technology is unique in the world, which has laid the foundation
for China's power enterprises to "go to sea".

According to data from the National Bureau of Statistics, in 2014, China's annual output of power generation equipment reached 154 million kilowatts, a year-on-year increase of 9.
2%, but the average annual installed capacity was less than 60 million kilowatts
.

In this context, the "Belt and Road" plan, which is known by the industry as "a good way to solve overcapacity", has been implemented
.
In the programmatic document "Vision and Actions for Jointly Building the Silk Road Economic Belt and the 21st Century Maritime Silk Road", power construction is also highlighted as an important starting point: strengthening energy infrastructure interconnection and cooperation, maintaining the safety of transportation channels such as oil and gas pipelines, promoting the construction of cross-border power and transmission channels, and actively carrying out cooperation
in upgrading and transforming regional power grids.

It is not difficult to see that the "Belt and Road" strategy is bringing new perspectives and unprecedented opportunities for Chinese power enterprises to go global, and under the drive of the "Belt and Road" strategy, the opportunity period for the power industry to "support the country" has arrived
.

As an important part of power construction, wires and cables will inevitably benefit
from it.
However, in the face of the current problems of uneven quality in the cable industry, it is also facing great difficulties and risks
in the process of going out.

So, how can cable companies better take advantage of the "Belt and Road" to go abroad?

With technology to the sea, UHV drives cable enterprises to go out

In 2015, UHV construction exceeded previous expectations, and State Grid plans to approve the construction of a total of 14 lines
this year.
In the first half of the year, four lines
have been started: Mengxi-Tianjin South, Yuheng-Weifang, Jiuquan-Hunan, Jinbei-Jiangsu.
With the acceleration of the follow-up "five-interchange and eight-direct" UHV project, the investment in the new UHV power grid will reach 450 billion yuan, plus a total investment of 1.
5 trillion yuan in power grids at all levels, driving investment in related industries by 1.
7 trillion yuan, which can drive an average annual GDP growth of more than
0.
8 percentage points.

The increase in UHV construction has greatly promoted the development of transmission and distribution manufacturing, and a series of supporting equipment represented by ± 800 kV DC UHV and 1000 kV AC UHV have come out one after another, and have been put into operation successfully and have been in operation
for a long time.

After successfully standing at a new high point in technology, UHV equipment began to focus on overseas markets
.
On May 19, 2015, the foundation stone of the Brazilian Meilishan UHV transmission project was laid in Brasilia, the capital of Brazil, which was the first UHVDC transmission project won by the State Grid Corporation of China overseas, marking a major breakthrough
in UHV technology "going global".

With the implementation of the "Belt and Road" strategy, UHV will once again bring benefits to enterprises
.
The construction of UHV has driven the demand for wires and cables, especially in the context of smart grid, the requirements for power supply reliability and intelligence of the power grid are higher, and intelligent cables with self-healing, monitoring and other functions have ushered in development opportunities
.

At present, in China's wire and cable industry, foreign-funded enterprises occupy a considerable proportion, especially in high-end products, the advantages of foreign-funded enterprises are more obvious
.
The "Belt and Road" and UHV construction have brought new development opportunities to China's cable industry, but China Cable still has a long way to go
if it wants to go out and occupy a certain market overseas.

"Going out" opportunities and risks coexist How cable companies respond

Most of the countries along the "Belt and Road" belong to developing countries, most of the annual per capita electricity consumption is less than 5,000 kWh, power supply projects and equipment aging, poor management and other problems are prominent, power grid and other infrastructure construction is backward, and there is a rigid demand
for power investment.
These countries are rich in energy resources, such as coal, oil and gas resources in Central Asia and abundant hydropower resources in Southeast Asia, which complement China's advanced power project construction, power equipment manufacturing, and power plant operation and maintenance capabilities
.
Therefore, whether it is for power generation enterprises, power grid enterprises, power construction enterprises, equipment manufacturing enterprises, it is a new development opportunity
.

While seeing opportunities, we should also pay attention to the existing risks and challenges: First, national risks
.
Political events such as expropriation, nationalization, war, religious conflicts and terrorist activities are the biggest and most unpredictable risks
to foreign investment.
The second is industrial risk
.
It mainly includes project development environment, industry cycle risk, industrial supporting risk, regulatory policy risk and competitive pattern risk
.
The third is investment risk
.
Including project approval risks, policy, financial, cultural, human resources and other market service environment, government operation efficiency and value orientation and other soft environmental risks, construction process labor, taxation, construction conditions, equipment and material procurement and supply, environmental protection and other risks
.
Fourth, integration risks
.
After building and acquiring overseas assets, enterprises should integrate
the company's control structure, management system, corporate culture and other aspects.
In some outbound M&A projects, some Chinese enterprises failed to integrate in the later stage, resulting in operational difficulties or integration failures
.

Of course, in addition to the above international risks, the real factor restricting the exit of cable companies lies in the Chinese cable companies themselves
.

At present, China's wire and cable production and sales are the world's first, but the industrial concentration is low, enterprises in product varieties, selection of technology has serious convergence, lack of core competitiveness, formed the trend
of homogeneous competition in the industry.
In addition, there are very big deficiencies
in terms of technology compared with the international community.
The most prominent problem is that local wire and cable companies have not kept up with the pace of wire and cable research and development in the world today, although they have also made certain achievements in local technology, but they are still weak in high-end wire and cable research and development, and it is difficult to compete with international cable
giants.

Nevertheless, there are still companies that can traverse the overseas cable market, how do they do it?

Looking at the world map to do business along the "Belt and Road" to go out

If Chinese cable companies really master key technologies, excellent product quality and perfect after-sales service, customers will take the initiative to come to the door when they hear about the good reputation
.
By then, China's cable industry will really go to the world, and it will really support the country
.