Power industry is the mainstay of the national economy. The scale of China's grid construction has been expanding continuously.

Driven by power grid construction, China's power transmission & distribution equipment industry is developing rapidly and its market size and sales revenue are both increasing continuously. As for power transmission & distribution sub-industries, the growth rate of revenue and profit in the sub-industries both remained above 30% in 2007.

According to the characteristics of power construction, power plants should be built in advance of power grid. In the Tenth Five-Year Plan period (2001-2005), China's investment in power industry focused on the construction of power plants, while China is to focus its investment on the construction of power grid during the Eleventh Five-Year Plan period (2006-2010). The ratio of power transmission & distribution assets to power generation assets is 6:4 in the developed countries, but the ratio in China is still smaller than 4:6. China will increase its investment in the power transmission & distribution field to raise the proportion of power grid assets in the future. The power transmission & distribution industry will keep a momentum of steady growth.