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The "Chinese era" of fiber optic cable is coming!

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The "Chinese era" of fiber optic cable is coming!

Date of release:2018-10-09 Author: Click:


Recently, the first World Fiber Optic Cable Conference jointly sponsored by CRU and Changfei Company was held in Wuhan Optics Valley, attracting more than 600 experts, executives and representatives from all over the world. The successful convening of the conference highlighted the important position of the Chinese market and industry in the world, and also played the "Chinese rhythm" of the development of the world's fiber optic cable.

Two years, two first leapfrog developments

This meeting is the "first show" of the World Fiber Optic Cable Conference in China, but it is not the case for CRU, one of the organizers. In fact, as early as last October, CRU held the CRU Asia-Pacific Fiber Optic Cable Conference in conjunction with Changfei. The convening of this meeting depends on the success of last year's meeting.

Compared with last year's Asian conference, this year's World Fiber Optic Cable Conference has risen to a new level, both for the guests and for the conference. In terms of the size of the conference, more than 600 guest representatives increased by 50% compared with last year. Representatives from all walks of life in the industry chain attended the meeting, except for the top Chinese companies represented by Changfei, Bonfire, Fortis, Hengtong, Zhongtian, etc., as well as Corning, Prysmian, Shin-Etsu, and Stred. In addition to the fiber optic cable industry giants, it has attracted the attention of financial institutions such as Hony Capital, CICC, CITIC Securities and Huatai Securities. According to CRU statistics, the guests were distributed in 25 countries and regions, including 140 foreign guests, more than a quarter of the total.

Compared with last year's major research and development of fiber optic cable technology and applications in this segment, this year's agenda is set to be more macro and comprehensive. In addition to comprehensive forecasts for China and the global market, top experts also conducted key analysis on Europe, the Middle East and other regions, especially Russia, India and other countries, and helped the guests to systematically grasp the industry trends. In addition, the conference also focused on the development of new fiber, fiber and cable manufacturing equipment for the next generation of fiber optic cable applications, raw material prospects, network technology development, and further analysis of future industry development in different areas and perspectives, and built an industry. A three-dimensional blueprint for development.

“The 2016 World Fiber Optic Cable Conference has achieved leapfrog development compared to last year’s CRU Asia-Pacific Fiber Optic Cable Conference.” Mr. Nick Morgan, CEO of CRU, spoke highly of the success of the conference.

The "Chinese era" of fiber optic cable is coming

The evolution of the CRU Fiber Optic Cable Conference in China from the Asia-Pacific conference to the World Conference reflects the growing role of the Chinese market and industry in the world. According to data released by CRU in August this year, the demand for fiber optic cable in the Chinese market will account for 55% of the global total. In the next five years, this proportion will remain above 50%.

The huge proportion of demand is only one aspect of the importance of the Chinese market. In fact, in the nearly 30 years of the rapid development of the global fiber optic cable industry, China's industry is rapidly emerging and its market position has been greatly enhanced. According to statistics, China's production of optical fiber, optical cable and preforms accounted for 59%, 60% and 49% of the total global manufacturing, respectively. The overall R&D strength of the industry has been significantly improved. The core fiber optic technology of optical fiber preforms has been mastered, and a complete fiber optic cable industry chain covering raw materials, preforms, optical fibers, optical cables, ODN engineering and technical services has been formed. In the words of Zhuang Dan, chairman of the 2016 World Fiber Optic Cable Conference and president of Changfei, "the "Chinese era" of global fiber optic cable is coming."

This is definitely not a statement of Changfei Company, but an industry consensus that represents the “five giants” of 80% of the voice of China's fiber optic cable industry. If last year's Asian Conference was generally cautiously optimistic about the future development of the Chinese market, then the "Big Five" at this year's World Congress is absolutely full of confidence. "In the next five years, the global fiber optic cable market demand will continue to grow at a high speed, and the biggest driving force will come from China." Zhuang Dan said. "In 2016, the demand for optical fiber from the three major operators will increase by 17%, and will grow steadily in the next few years," said Ge Jun, president of FiberHome Communications Technology Co., Ltd. "With the promulgation of favorable policies such as broadband China, Internet +, Belt and Road, and China Manufacturing, it is expected that the demand for China's fiber optic cable market will continue to be strong in the next 3-5 years," said Xiao Wei, president of Fortis Group. "Our country's roads are blocked every year. The development of fiber optic cables is the same, and the traffic growth is far faster than the fiber laying speed. So at least until 2020, the demand for fiber optic cables is growing at a high speed." Qian Tonglin, CEO of Hengtong Group A metaphor for the image. "The price of optical fiber has increased by about 20% this year, reflecting the supply and demand relationship of the market from one side. In the next few years, the overall demand for fiber optic cable will remain at a high level in both the Chinese market and the global market." Xue Chi, President of Zhongtian Technology Group The same judgment was made.

"There is a Silicon Valley in the world, and there is also a valley in the world." This statement by Wuhan Mayor Wanxiang shows the hope for the future development of the entire Chinese fiber optic cable industry. The "Chinese rhythm" of the global fiber optic cable industry has already played, and we will find more "Optical Valley".

Viewing internationalization from the perspective of "double mirror"

The World Fiber Optic Cable Conference was settled in Wuhan. It is the result of China's fiber optic cable industry striding out and actively strengthening communication with the world's top industry representatives. It is also the result of the further maturity and opening up of the Chinese market and the global industry giants gradually coming in.

In the past 30 years, China's fiber optic cable industry has adopted a strategy of “market-for-technology” to continuously improve production while embarking on a “development-absorption-re-innovation” technology development path, breaking through the light bar and raw materials. Waiting for a core technical problem, constantly narrowing the technological gap with the world's top companies.

In the past few years, under the tide of global economic integration, “going out” has become a consensus in the industry. Leading companies such as Changfei, Fenghuo and Hengtong continue to improve the domestic production and sales network, and enter the international market in a big way, vigorously implement comprehensive internationalization including talents, market, R&D and management, and fully participate in global competition. Taking Changfei as an example, the annual total sales volume of its fiber-optic cable has exceeded 135 million core kilometers, ranking first in the world. In the country, we have established a production and sales layout covering the whole country with Wuhan as the center. We have established 22 overseas offices, established joint ventures in Myanmar, Indonesia, South Africa and other places, and are expanding at a rate of “building one new factory every year”. .

While China's fiber optic cable industry is aggressively advancing its internationalization strategy, the Chinese market is also undergoing a transformation from localization to internationalization. The World Congress fiber optic cable is a concentrated expression in China. Looking at it, the leading companies in the global fiber optic cable preforms have established partnerships in China decades ago. The competition in the Chinese market is no longer a competition among several leading domestic enterprises, but like the mature markets such as Europe and the United States, it has become the international downfall of the world's top enterprises.

From following to leading, from catching up to leading. It is hoped that China's fiber optic cable industry can rely on the "Broadband China" big ship to adapt to the tide of the global information economy and move toward the more advanced echelon and higher level.

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