Lack of patent awareness: Chinese cable companies face setbacks in their going global strategy

Nowadays, various industries in China are experiencing varying degrees of weak patent awareness, including the cable industry. In recent years, the call for "going global" has become increasingly strong, and cable manufacturers have also tailored their "going global" strategies and tactics. However, due to weak patent awareness, Chinese cable manufacturers have suffered greatly in international market competition. Moreover, the proportion of enterprises that can truly achieve "going global" is not high, mainly because China's cable production enterprises have long been hovering in the competition of the mid to low end market, and have been difficult to enter the international market with a high-end identity. Therefore, even for cable production enterprises that have already entered the international market, they generally give up the high-end foreign market.

However, even so, the competitiveness of Chinese cables in foreign markets is greatly reduced. On the one hand, this is due to severe local protectionism, and on the other hand, it is through the guise of patent protection to monopolize and monopolize. Especially for Chinese companies entering the US market, the biggest challenge is not tangible trade barriers, but rather non-tariff trade barriers at the legal level, especially the risk of intellectual property litigation. Therefore, in the journey of entering the global market, domestic cable companies need to use intellectual property to build core competitiveness and strengthen awareness of intellectual property protection, which has become an urgent problem for domestic enterprises to solve.

In addition, patents and innovation are specific manifestations of the core competitiveness of cable production enterprises. Domestic wire and cable production enterprises have also exposed serious problems of weak patent awareness. Compared with developed countries abroad, the number and quality of patents in China's cable industry show a significant decline, and the conversion rate of patent achievements is astonishingly low. According to statistical data, if calculated on a per capita basis, the number of patents in China is 14:100 compared to developed countries. In addition, the conversion rate of patent achievements in China is as low as about 20%, and the industrialization rate of patents is about 5%, while the conversion rate of patents in developed countries can reach about 80%. The implementation rate of patent technology transfer in China (i.e. the ratio of the number of national patent technology transfer contracts to the number of national patent authorizations) is only 0.29%, which is a huge gap compared to the implementation rate of around 5% in developed countries.