In recent years, some people in the cable industry in our country have constantly proposed that the concentration of the cable industry in our country is not high enough, and the integration should be vigorously promoted to increase the degree of industrial concentration, and the media do not have to think all the way to follow suit. In fact, this formulation is neither realistic nor consistent with our country’s specific national conditions.
What is the degree of industrial concentration? Industrial concentration is also called market concentration. It refers to the degree of dominance of a certain industry in the production volume, sales volume, and total assets of a few companies in a certain industry in the market. It is generally used by some of these companies. The indicator (in most cases, the sales indicator) is expressed as a percentage of the total amount of the industry. According to this definition, it is not difficult to understand that the so-called increase in industrial concentration is actually the concentration of product output, sales volume, and total assets to several large companies. The more concentration, the higher the degree of concentration. Some people took China's cable industry concentration compared with industrialized countries and found that China's cable industry concentration is too low and needs to be greatly improved.
Originally, this comparison should not be conducted. Even if a comparison is made, it cannot explain the problem, and it cannot solve the problem.
First of all, the development of SMEs is China's basic national policy. It is said that there are more than 7000 various types of wire and cable enterprises in the country, distributed throughout the country, and almost all of them are privately-owned enterprises, of which the East China region is extremely bad. East China is the largest area for large-scale cable companies in China, and it is also the region with the largest number of cable companies. Several billion and nearly 10 billion cable companies are located there. It is said that the industrial concentration there is not too low. However, the degree of industry concentration in an industry cannot be seen only from the number of companies. It is even more important to see whether their existence is in line with the country’s industrial policies. We often interpret the country’s industrial policy only as a state-to-business constraint, while ignoring the state’s basic national policy of encouraging economic development and raising employment levels. If the development of small and medium-sized enterprises in the most populous East China region is restricted and only a few big companies are left behind, the social problems that arise there will be imaginable. Commenting on the status of an industry cannot violate the country’s industrial policy.
Second, the country has been supporting SMEs. When experts call for increasing industrial concentration, they only proceed from the interests of their own companies and call for the integration of SMEs that “disturb the marketâ€. This is an industry-oriented misdirection. The Ministry of Industry and Information Technology formally released the “12th Five-Year Plan for SME Growth†on September 22. This plan is China's first state-level special plan for the development of SMEs. This is China's first state-level special plan for the development of SMEs. Its primary task is to create jobs. On September 30, the State Administration for Industry and Commerce issued the "Administrative Measures for the Registration of Individual Industrial and Commercial Households." To encourage the development of the individual economy, the amount of industrial and commercial registration penalties for self-employed individuals will be reduced. Except for the revocation of the license, the self-employed business license can be valid for a long time. . The introduction of these policies is undoubtedly the expansion of employment, rather than limiting the growth of small and medium-sized enterprises and even micro-enterprises. It is forbidden or impossible to focus the "cake" of reform and opening up on the baskets of several large enterprises.
Once again, corporate affiliation has dispersed the difficulty of integration. Over the past 30 years of reform and opening up, with the development of economic construction, China’s cable industry has emerged and has grown rapidly. Today, 400,000 people have formed an industrial army that spreads across the country and provides products not only for national economic development, but also Solved the employment problem for hundreds of thousands of people for the country. Except for large central enterprises, other companies are regulated by local governments and governments at all levels regardless of their economic attributes. Although the wire and cable industry is relatively exhausted due to fierce market competition, it is still said by the company’s chairman Zhang Shengfei that “it is always a sunrise enterpriseâ€. Local governments have not limited the establishment of new companies and the transformation and expansion of old enterprises. As an important source of local economic revenue, the local government has not been able to support wire and cable companies. What is more, it is not enough to integrate the enterprises?
Finally, increasing industry concentration will ruin the cable industry. This argument is not alarmist. Some people have judged the cable industry as a "competitive" industry, and pointed out that the output value of China's top ten wire and cable companies only accounts for 10% of the industry, while the seven major companies in Japan account for 70% of the country's wire and cable sales. The company accounts for more than 95% of the country's wire and cable sales, and the 90% of the French market's turnover is monopolized by the top five companies. This highly decentralized pattern of the wire and cable industry in China not only makes it difficult to achieve economies of scale, but also intensifies production. Overcapacity and excessive market competition. In addition to a few monopoly industries in the world, all other industries are competitive industries. Does not mean that there is competition for development? When market competition comes, it hates and criticizes this. Some people even said bluntly that "it is best to reduce the number of wire and cable companies in the country to 500." Even in accordance with the "12th Five-Year Development Guidance Opinions of the Wire and Cable Industry," the company has formed "3 to 5 large-scale enterprise groups with sales of tens of billions of yuan" and "6 to 12 specialized enterprises with sales of 10 billion yuan." It can't increase industry concentration. It's just an expansion of the existing large-scale enterprises, and it is of no benefit to the small and medium-sized enterprises that account for 95% of the national cable industry. It even jeopardizes the social stability of the entire cable industry.
In short, one-sided emphasis on improving the concentration of the cable industry is not only not conducive to the development of China's cable industry, nor is it suitable for China's specific national conditions. The top priority is not to force the promotion of industrial integration and let a large number of small and medium-sized enterprises go out of business. Instead, the government agencies, quality inspection agencies, and industry organizations at all levels work together to rectify the industry, guide and support enterprises in self-diagnosis and self-improvement, let this Hao. The mighty and powerful industrial army has embarked on the bright path of sound development, and it is not necessary to scream for anything to increase the degree of industrial concentration.
What is the degree of industrial concentration? Industrial concentration is also called market concentration. It refers to the degree of dominance of a certain industry in the production volume, sales volume, and total assets of a few companies in a certain industry in the market. It is generally used by some of these companies. The indicator (in most cases, the sales indicator) is expressed as a percentage of the total amount of the industry. According to this definition, it is not difficult to understand that the so-called increase in industrial concentration is actually the concentration of product output, sales volume, and total assets to several large companies. The more concentration, the higher the degree of concentration. Some people took China's cable industry concentration compared with industrialized countries and found that China's cable industry concentration is too low and needs to be greatly improved.
Originally, this comparison should not be conducted. Even if a comparison is made, it cannot explain the problem, and it cannot solve the problem.
First of all, the development of SMEs is China's basic national policy. It is said that there are more than 7000 various types of wire and cable enterprises in the country, distributed throughout the country, and almost all of them are privately-owned enterprises, of which the East China region is extremely bad. East China is the largest area for large-scale cable companies in China, and it is also the region with the largest number of cable companies. Several billion and nearly 10 billion cable companies are located there. It is said that the industrial concentration there is not too low. However, the degree of industry concentration in an industry cannot be seen only from the number of companies. It is even more important to see whether their existence is in line with the country’s industrial policies. We often interpret the country’s industrial policy only as a state-to-business constraint, while ignoring the state’s basic national policy of encouraging economic development and raising employment levels. If the development of small and medium-sized enterprises in the most populous East China region is restricted and only a few big companies are left behind, the social problems that arise there will be imaginable. Commenting on the status of an industry cannot violate the country’s industrial policy.
Second, the country has been supporting SMEs. When experts call for increasing industrial concentration, they only proceed from the interests of their own companies and call for the integration of SMEs that “disturb the marketâ€. This is an industry-oriented misdirection. The Ministry of Industry and Information Technology formally released the “12th Five-Year Plan for SME Growth†on September 22. This plan is China's first state-level special plan for the development of SMEs. This is China's first state-level special plan for the development of SMEs. Its primary task is to create jobs. On September 30, the State Administration for Industry and Commerce issued the "Administrative Measures for the Registration of Individual Industrial and Commercial Households." To encourage the development of the individual economy, the amount of industrial and commercial registration penalties for self-employed individuals will be reduced. Except for the revocation of the license, the self-employed business license can be valid for a long time. . The introduction of these policies is undoubtedly the expansion of employment, rather than limiting the growth of small and medium-sized enterprises and even micro-enterprises. It is forbidden or impossible to focus the "cake" of reform and opening up on the baskets of several large enterprises.
Once again, corporate affiliation has dispersed the difficulty of integration. Over the past 30 years of reform and opening up, with the development of economic construction, China’s cable industry has emerged and has grown rapidly. Today, 400,000 people have formed an industrial army that spreads across the country and provides products not only for national economic development, but also Solved the employment problem for hundreds of thousands of people for the country. Except for large central enterprises, other companies are regulated by local governments and governments at all levels regardless of their economic attributes. Although the wire and cable industry is relatively exhausted due to fierce market competition, it is still said by the company’s chairman Zhang Shengfei that “it is always a sunrise enterpriseâ€. Local governments have not limited the establishment of new companies and the transformation and expansion of old enterprises. As an important source of local economic revenue, the local government has not been able to support wire and cable companies. What is more, it is not enough to integrate the enterprises?
Finally, increasing industry concentration will ruin the cable industry. This argument is not alarmist. Some people have judged the cable industry as a "competitive" industry, and pointed out that the output value of China's top ten wire and cable companies only accounts for 10% of the industry, while the seven major companies in Japan account for 70% of the country's wire and cable sales. The company accounts for more than 95% of the country's wire and cable sales, and the 90% of the French market's turnover is monopolized by the top five companies. This highly decentralized pattern of the wire and cable industry in China not only makes it difficult to achieve economies of scale, but also intensifies production. Overcapacity and excessive market competition. In addition to a few monopoly industries in the world, all other industries are competitive industries. Does not mean that there is competition for development? When market competition comes, it hates and criticizes this. Some people even said bluntly that "it is best to reduce the number of wire and cable companies in the country to 500." Even in accordance with the "12th Five-Year Development Guidance Opinions of the Wire and Cable Industry," the company has formed "3 to 5 large-scale enterprise groups with sales of tens of billions of yuan" and "6 to 12 specialized enterprises with sales of 10 billion yuan." It can't increase industry concentration. It's just an expansion of the existing large-scale enterprises, and it is of no benefit to the small and medium-sized enterprises that account for 95% of the national cable industry. It even jeopardizes the social stability of the entire cable industry.
In short, one-sided emphasis on improving the concentration of the cable industry is not only not conducive to the development of China's cable industry, nor is it suitable for China's specific national conditions. The top priority is not to force the promotion of industrial integration and let a large number of small and medium-sized enterprises go out of business. Instead, the government agencies, quality inspection agencies, and industry organizations at all levels work together to rectify the industry, guide and support enterprises in self-diagnosis and self-improvement, let this Hao. The mighty and powerful industrial army has embarked on the bright path of sound development, and it is not necessary to scream for anything to increase the degree of industrial concentration.
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