1. The rise in prices and that of bulk commodities such as copper and aluminum in raw materials brought by the depreciation of RMB will lead to an increase in the cost of the enterprise.
2. The outbreak of a large-scale trade war will inevitably affect the export of cable products to the United States. The increase in tariffs will directly lead to an increase in the price of products exported to the United States which will lead to a decline in the price/performance competitiveness of products.
3. "Made in China 2025" is one of the targets of the US trade war. If the trade war cannot be alleviated in the short term, the industrial and economic development speeds of both China and the United States will slow down or even reverse. At that time, not only will the cable industry be directly affected, but the slowdown in social and economic development may also lead to a reduction in market size.