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China's simple and extensive investment driven economic growth mode over the past few years has resulted in overcapacity in almost all sectors of the Chinese economy. In the future, China's economy must develop on the way of looking for new economic growth points and going to inventory, and the cumulative effect of GDP's base, which, objectively, restricts the high growth potential of China's economy. At the same time, the Chinese government is not holding the past at the expense of the environment at the expense of the past. The development economic mode of sustainable development has not been recognized by the government. China's economy will enter a period of industrial upgrading and transformation.

In the transition period of China's economy, the following changes in China's economy will bring great impact on China's wire and cable industry:  China's economic growth will not be likely to maintain a rapid growth rate of 10% per year as in previous years. According to the National Statistics Bureau, China's revised GDP growth rate was only 7.7% in 2012, and 10% in the previous years. Above。 Second, we should pay more attention to the full use of resources, take the advantage of the improvement of science and technology, replace the original resources consumption, the labor input to achieve development, pay attention to environmental protection, increase the promotion of energy saving and emission reduction policies and the application of green environmental protection materials. Economic development will pay more attention to quality and pay attention to the sustainability of economic development.

As a wire and cable industry closely related to the national economy, the changes in these external environment will inevitably affect the industry. At the same time, the development of China's wire and cable industry has reached a certain point. In terms of total output, China's wire and cable industry has exceeded the United States and has become the world's largest producer and consumer of wire and cable, but most of the enterprises are concentrated in the low-grade field by reducing the price of products to snatch the market. It follows that the competition in the industry is becoming more and more intense, the overcapacity, the decline of profits, the low gold content of the products are not high, and the cable industry of our country is "big and not strong". The change of these economic developments is undoubtedly a "external force" to the wire and cable industry, which will bring great influence on the wire and cable industry in China. For enterprises, it is an opportunity, or a challenge. Whether it is an opportunity or a challenge depends on how the wire and cable enterprises understand and how to deal with it.