China has developed its new generation of fibre optics in the city as part of its strategy to advance the country's network communications.
The product, called non-dispersion single mode fibre optic, has passed the stringent tests conducted by the Ministry of Information Industry, Zhu Zhaozhang, general manager of ZhongTian Technologies Fibre Optics Co Ltd, said yesterday.
Local insiders said the new fibre optic is well placed to compete with its overseas counterparts and has its own intellectual property rights.
"Our purpose of developing the fibre optic is to replace the large amount of imports," Zhu said.
The general manager told China Daily that about 40 percent of fibre optics consumed in China last year were imported from the United States, Japan and the Republic of Korea.
ZhongTian took a year and spent 166 million yuan (US$20 million) to develop the new fibre optic which is now being produced in its factory based in Nantong, East China's Jiangsu Province.
It has a design capacity capable of producing 5 million kilometers of fibre optics annually. But "it depends on the market when the factory is able to reach the target," Zhu said.
Company Chief Engineer Lu Guoliang said the factory is expected to produce 1 million kilometers of fibre optics this year.
China last year produced 25 million kilometers of fibre optics, with Shanghai sharing 2 million kilometers. It is expected to need 2.5 million kilometers of optical cables by the year 2005, including 500,000 kilometers of long-distance cables.
"China, which is considered the world's biggest potential fibre optics market, is facing a price war that is confusing the market order," Zhu said.
The war, which was caused by a low-priced dumping of fibre optics from the Republic of Korea and Japan, has led to a sharp decrease of the market price from 1,500 yuan (US$181) for per kilometer of fibre optics in 2001 to the current 120 yuan (US$14.5).
Zhu said the new fibre optic his company will produce will have to be sold at a price lower than the market average in order to secure a market share.
But he said the fibre optics industry association is working out a regulation to curb the dumping.
ZhongTian will export some of its fibre optics to Pakistan and negotiations are being made with European consumers.
"Overseas prices are higher than domestic ones and can make up some losses at the home market," Zhu said, adding that the company is aiming for a 20 percent export of its products in the near future.
(China Daily June 13, 2003)
