One is blind expansion, leading to overcapacity. At present, not only in the fiber optic cable There is overcapacity problem, due to domestic manufacturers into the upstream optical fiber prefabricated rod industry, overcapacity problems are likely to spread to the prefabricated rod industry.

The anti-dumping investigation of Japanese and American optical fiber precast rod manufacturers, launched in March 2014, may accelerate the transfer of prefabricated rod production capacity from foreign-funded enterprises to China, and the overcapacity of the downstream optical fiber industry is likely to be replicated to the optical fiber prefabricated rod industry. Second, China's optical communication industry has a lack of core technology, the development capacity is not strong enough, this shortcoming in the optical device performance is particularly strong. China's carrier backbone network has begun to fully enter the era of 100G, the increase of transmission capacity with the reduction of transmission distance, the solution to this problem is to adopt lower loss of optical fiber.

For ultra-low loss fiber, its rod making process is completely different from the traditional optical fiber, China's optical fiber production enterprises in this field is still in the stage of technology research and development, with the Japanese and American enterprises between the existence of more than 2-3 years of Technology gap.