Our report on the competitiveness enterprises in wire and cable industry of China this year, which is based on the results in 2016, is concentrated on exploring how the innovation of the Chinese wire and cable enterprises influenced their competitiveness. There are always two directions of the research on the competitiveness enterprises in wire and cable industry of China, namely, evaluations on the performance of the competitiveness in wire and cable enterprises and exploration on the source of it. Surely, the two aspects are not entirely independent with each other. In the process of monitoring, we will probably find some new problems, thus contributing to our further study on the source of the competitiveness in wire and cable enterprises. The process of the study on the resource is also helpful to our deep understanding on the conception and expression of the competitiveness, which could better monitor the competitiveness of wire and cable enterprises to form a more scientific monitoring method.
After several years of overseas market expansion and promotion, the "annual Chinese wire and cable competitiveness report" has received great attention and recognition by overseas people. The selection data and results are cited and referenced. Therefore, we have decided to increase annual list of the Top 10 competitiveness enterprises in the submarine cable field of global market since 2017.The purpose is to help the global ocean cable companies more clearly to realize the competitive situation between Chinese and foreign wire and cable companies under the context of economic globalization.
The competitiveness enterprises in wire and cable industry of China in 2017 not only includes the monitoring results of the competitiveness of wire and cable enterprises, the analysis report on industry market, especially the subject in this year is the influence of innovation from the Chinese wire and cable enterprises on the competitiveness.
The results show that one of the main reasons that our wire and cable enterprises lacking expenditure on research and development is the uncertainty is too high. At present, the scale of our wire and cable enterprises is too small to transit the research-dispersion risk of multiple projects. The desperate research investments nearly like gamble, which is different from our traditions that striving to avoid risks in our national culture. So now, our government stresses that enterprises still need to intensify their efforts to speed up basic research and encourage the combination of production, teaching and research when they are the main bodies of independent innovation. The Industry Institution of wire and cable also has to play its important role in organizing related units to conduct joint development, studying on risk sharing, and results sharing when the singles couldn't undertake one project.
In addition, it is necessary for us to take measures to protect the intellectual property in wire and cable enterprises and preserve their innovation profit. The results show that one of the reasons that wire and cable enterprises lacking of research and development lies in the uncertainty of the profit of research and development. It uncertainty has its necessity. But because lacking of protection on our intellectual property, it also enlarge the uncertainty on the profit. One of the outer conditions to encourage enterprises to do independent innovation is to have strict intellectual property protection system.
In the end, the most important is to intensify the efforts to bring up talents, lower the costs of high-qualified talents in wire and cable enterprises. The research report analyzes that one of the most important reasons that most of our wire and cable enterprises taking cost strategy is the cost of producing high-quality products higher than the overseas.
The reason that the high cost of our wire and cable enterprises producing high-quality products is that the cost is high when they are using high-qualified talents. For example, currently part of the salaries that our wire and cable enterprises pay for staffs cannot be taken off before the tax, but have to be charged in the tax. Enterprises cannot entirely take off the salaries paying for the high-qualified talents before the tax, but to be disbursed from the cost and dispenses after the tax (the practical operation cannot be deducted before the tax, the effects are equal to be disbursed from the cost and dispenses after the tax). This practice increased the cost of wire and cable enterprises using high-qualified talents, especially those who use plenty of them to do research and development. It also increased the cost of the research and development in wire and cable enterprises. If this problem cannot be resolved completely, the technological innovation of China wire and cable enterprises will be restricted greatly. It is even harmful to the fair competition between Chinese and foreign wire and cable enterprises.
Looking into the bright future, We have seen that national policies such as "One Belt And One Road, eight-cable eight" and other continuous positive factors bring new opportunities to the wire and cable industry. But the deep-rooted contradictions that haunted the wire and cable industry for many years still exist. Blindly expansion sometimes took place, excess production capacity is difficult to change. It is also hard to close down backward production facilities. Merger and restructure.are also difficult and the process is too slow. The capacity for innovation is weak, and the state that core technology restricted by others is not relieved. The market is lack of standardized management. These challenges are still need our colleagues in the wire and cable industry to face and solve.
Accreditation Committee of "the top 10 competitiveness enterprises in China's wire and cable industry"
Sep. 2017