Briefing on "Symposium on Important Issues of Concern to the Industry"

2015-12-02

On November 22, 2015, in response to the strong request of relevant enterprises and local associations (business), on some important issues of concern to the industry, the Wire and Cable Branch of the China Electrical Industry Association held a work forum in Shanghai attended by the heads of relevant backbone enterprises and the secretary-general of the association (business) in the industrial gathering area...


On November 22, 2015, at the strong request of relevant enterprises and local associations (business), on some important issues of concern to the industry, the Wire and Cable Branch of the China Electrical Appliance Industry Association held a work forum in Shanghai attended by the heads of relevant backbone enterprises and the secretary-general of the association (business) of the industrial agglomeration area.
 
The wording of the participating enterprises and local associations (business) strongly reflected that: in the name of "Jiangsu Optoelectronic Cable Chamber of Commerce" (hereinafter referred to as "Jiangsu Chamber of Commerce") and Beijing Baizebang Information Technology Co., Ltd. (China Cable Online Website) (hereinafter referred to as "Baizebang") jointly carried out the so-called "Price Monitoring Prompt" activity for cable bidding projects around the country, to the relevant bidders, tenderers, users and relevant departments of governments at all levels, wantonly distribute a large number of "prompt letters", "supervision prompt letters", "bid quotation analysis proposal", "subject matter price analysis proposal", etc., and continuously write and reprint articles on relevant websites such as China Cable Online, and carry out irresponsible, innuendo and specious questioning and smearing on many (pre) winning cable enterprises. Everyone expressed extreme indignation and resolute resistance to such acts of discrediting peers and disrupting the industry. According to the strong request of the delegates, the meeting will be reported to the industry to set the record straight.
 
1, "price monitoring tips" without the Jiangsu Chamber of Commerce normal voting procedures forced to launch, by the industry's general opposition.
 
The "Price Monitoring Prompt" activity was originally illegally carried out by the China Cable Chamber of Commerce (in preparation) and was promptly stopped by the Ministry of Civil Affairs. Instead, it will continue to be carried out in the collective name of "Jiangsu Chamber of Commerce. According to the members of the Jiangsu Chamber of Commerce, this activity has not been subject to the normal voting procedures of the Jiangsu Chamber of Commerce, and under the general and strong opposition of the main member units of the Jiangsu Chamber of Commerce (including honorary chairman, executive vice-chairman, vice-chairman, etc.), The chairman unit of the Jiangsu Chamber of Commerce (Far East Holdings) forcibly implemented it in the name of the "Jiangsu Chamber of Commerce" collective, and under the general and strong opposition of industry enterprises, local industry associations (business) associations, and local governments in industrial clusters, they insisted on sending "reminder letters" and "supervision reminder letters" to all parts of the country.
 
2. "Jiangsu Chamber of Commerce" to the company's own "price" to make "price does not offset copper", "price does not offset material", "price does not offset this" assessment conclusion can not be determined proof, consulting power and the credibility of the industry.
 
"Jiangsu Chamber of Commerce" to the company ("China Cable Online") self-compiled "price book" as the basis, according to its "manufacturing cost" empirical formula to calculate the cost, and use this to speculate whether a cable enterprise low-price dumping, high-price profit. This kind of price assessment lacks factual basis and industry basis, and does not have legal evidence and consulting power. The specific manifestations are as follows: first, the "price book" compiled by a "third party" company does not have the credibility of the industry; second, different cable companies have different technological levels, which affect product sales pricing, and companies have new processes, New technology, new materials and other trade secrets or patents, the "price book" and "manufacturing cost" quota experience formula compiled by Baichebang cannot consider these factors at all; third, the "Jiangsu Chamber of Commerce", together with a "third party" such as Baichebang Company, which does not have the qualifications of a price evaluation agency, calculates and evaluates the legality of the price behavior and the rationality of the price level of bidding companies in various regions, and publishes price evaluation reports. Violated the relevant state regulations on price evaluation activities involving the whole country and the public interest. The price assessment report issued by it does not have legal evidence or consulting power at all.
 
3. "Price monitoring tips" wantonly discredit peers and disrupt the industry.
 
China's "Price Law", "Contract Law" and so on are clear, operators have the right to set prices independently according to production and operation costs, market supply and demand conditions, etc. The "Price Monitoring Regulations" clarify that price monitoring is an activity of the government price authority to track, collect, analyze, predict, and announce changes in the prices of important goods and services. The "Regulations on the Suppression of Low-price Dumping" clearly states: "The industry average cost of goods and the rate of decline shall be determined and announced by the government price authority in conjunction with the industry authority". With regard to the supervision of bidding activities, China's Tendering and Bidding Law stipulates: "Bidding and bidding activities and their parties shall be subject to supervision in accordance with the law. The relevant administrative supervision departments shall supervise bidding and bidding activities in accordance with the law, and investigate and deal with illegal acts in bidding and bidding activities in accordance with the law". The exercise of the right of social supervision must be carried out in accordance with the law, and shall be exercised on the spot through the channels of reporting and reporting to the state administrative department, and the state administrative department shall find out the truth and deal with it. To carry out activities beyond their authority, to evaluate and judge prices that lack factual basis, grossly interfere with the legitimate rights of their members and enterprises in the same industry, and deviate from the purpose of social organizations. It is illegal to carry out business activities beyond the business scope of the company registered for industry and commerce, without obtaining legal qualifications or without legal filing procedures!
 
According to the white paper of "Jiangsu Chamber of Commerce", in the past year alone, "Jiangsu Chamber of Commerce" has issued 582 "Bid Quotation Analysis Proposals" and 4 "Target Price Analysis Proposals" to relevant tenderers. Send 140 "Reminder Letters" to bidders; 147 "Supervision Reminder Letters" were sent to users, bidders and government supervision departments, involving 188 bid sections. In the "Supervision Prompt Letter" issued to the project bidding unit, the bidding unit is prompted to draw attention to whether the (pre) winning enterprise has such things as "short meters, jerry-building (aluminum instead of copper, copper clad aluminum instead of copper; Reduce the performance index of cables (such as conductor resistance exceeding the standard, reducing the thickness of insulation, sheath, steel strip and copper strip, reducing the flame retardant level, etc.), using inferior materials for production (such as recycled plastic)" and other problems, implying that the (pre) bid winning enterprise cable has quality problems such as cutting corners and shoddy quality, misleading the bidding unit to make wrong judgment on the product quality of the (pre) bid winning enterprise, and reducing the evaluation of the bidding unit on the goodwill of the (pre) bid winning enterprise, at the same time, the "Supervision Prompt Letter" based on its data that does not have legal proof, consulting power and industry credibility, through content fabrication, irresponsible, innuendo, and specious questions, and in the "China Cable Online" And other websites published and reprinted to the public, damaging the image and goodwill of the (pre) winning cable company.
 
"Jiangsu Chamber of Commerce" signed an entrustment agreement with Baizhebang Company to pay high fees to it, and the two sides jointly carried out the so-called "price monitoring tips" activities for cable enterprises nationwide. Those hurt by this include not only many enterprises in the industry, but also a number of leading enterprises in the industry. Nine of the top ten competitive enterprises in the industry are not spared, but the chairman unit of Jiangsu Chamber of Commerce (Far East Cable) has never been affected. For many times (according to the price and cost calculation methods of Jiangsu Chamber of Commerce and Baizhebang Company), it also involves projects that won low-price bidding, however, the "Jiangsu Chamber of Commerce" has never issued a "reminder letter" or "supervision reminder letter". In response to the phenomenon of "selectively" sending "reminder letter" and "supervision reminder letter", the "Jiangsu Chamber of Commerce" explained that it "did not pay attention to these tenders". With such "special care", everyone questioned that it was under the banner of "industry self-discipline" to wantonly discredit peers and disrupt the industry.
 
The forum held urgent consultations on this issue and formed a joint statement on resisting illegal "price supervision tips" activities, which was echoed by relevant enterprises and industry organizations. The enterprises participating in the symposium and echoing the joint statement include the backbone enterprises in Jiangsu, Zhejiang, Shanghai, Shandong, Anhui, Guangdong, Fujian, Hubei, Hunan, Sichuan, Yunnan, Gansu and other provinces and cities, as well as the main producing provinces and cities, and cable gathering areas. Zhejiang, Anhui, Hebei, Guangdong, Hunan, Yixing, Suzhou, Wuwei and wire and cable branch and other local associations (business associations), on behalf of the backbone enterprises of the national wire and cable industry and the vast number of enterprises in the cable gathering area, we all agree that this matter not only involves the goodwill of many domestic cable enterprises, but also has a substantial negative impact on the industry image and the international reputation of China's wire and cable industry, which is of great importance to the industry. Everyone unanimously strongly requested to report the above situation to relevant state departments and higher-level associations, and called on relevant government departments and local governments to intervene and stop.
 
At present, the manipulation unit of the "price monitoring prompt" activity, which is generally opposed and condemned by the industry, and Baitsebang Company are contacting enterprises in the name of the China Price Association to participate in the preparation of the "China Price Association Wire and Cable Price Branch". In view of its actions in the preparation process of the China Cable Chamber of Commerce and the Jiangsu Chamber of Commerce around the "price monitoring tips" activities and the adverse impact on the industry, everyone is not only extremely indignant at the current chaos in the industry, but also full of concern about the healthy development of the industry in the future. In order to prevent the industry in the future, the conference called on the industry to boycott! At the same time, the leaders of the China Price Association are reminded to pay attention to the concerns of the cable industry and handle them correctly.
 
The wire and cable branch of China Electrical Equipment Industry Association and China Electromechanical Industry Price Association are the only industry organizations in the cable industry that are authorized by the government price department to carry out the work of "monitoring of key products in the wire and cable industry". The monitoring price and cost information of key products in the industry formed on the basis of collecting quotations from many backbone enterprises across the country are in line with the provisions of laws and regulations, the guidance and support of the government and higher-level associations, and the extensive participation of the industry are the guarantee of the credibility and authority of the "key product monitoring of the wire and cable industry.
 
Regarding the relevant situation reflected by local enterprises and local associations (business) at the symposium, the Wire and Cable Branch of the China Electrical Appliance Industry Association will truthfully report and communicate to the relevant state departments, relevant government departments of Jiangsu Province, and the user industry.
 
I hereby inform you
 
November 23, 2015
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