It's wrong to think manufacturing in China is stagnant: Xu Lirong

Interview with Xu Lirong, Chairman, BRICS Business Council-China chapter

Xu Lirong, chairman of the Chinese chapter of BRICS Business Council, and chairman of China COSCO Shipping Co., tells Subhayan Chakraborty  that the manufacturing sector in China is undergoing an upgrade and Chinese investments abroad will continue. Excerpts:

Is there a sense of unease in China over growing investments abroad by Chinese investors when the domestic manufacturing sector is stagnating and holding down the economy?
 

It is wrong to think the manufacturing sector is stagnating in China. We are in the process of upgrading our industry in line with the growing trends and needs of the global economy. Also, domestic investments in China are continuing strongly. Therefore, Chinese investments in other countries will continue to grow.

What are the sectors in which Chinese companies are looking to invest in India?
 

Infrastructure is very important for all developing nations and Chinese investors are looking to invest in the sector. Apart from traditional sectors such as infrastructure and manufacturing, Chinese companies are also interested in high-tech sector as well as start-ups, which, we feel, is the next step in a growing economy.

There have been calls for a greater adoption of the Chinese yuan for trade purposes at the BRICS Business Forum. How feasible is the idea?
 

Even if we can’t adopt a single currency at the moment, we should do everything possible to boost trade and industry among partner nations within BRICS. In this regard, greater trade in each other’s currency should be promoted.

The Chinese government has mooted the idea of a free trade agreement between the BRICS nations. How ready are the constituent nations for such an idea?
 

It has not been discussed officially, but China is committed to greater economic integration – in the form of trade and otherwise – among BRICS nations.