LI SHOUBING: «I built my business on the successful interaction between China and Russia, which benefits both sides»
SLC Group, multisectoral holding company that was created in 2001, is one of the most striking examples of a successful economic integration between China and Russia. The founder and CEO of the company, Li Shoubing, in an exclusive interview for the ‘Eurasian Dialogue’ magazine talks about the successful work of the SLC Group and the most promising international integration initiatives of China and Russia.
– Dear Mr. Li, thank you very much for agreeing to give an interview to our publication, this is significant for us.
– You are welcome. I am always happy and open for the dialogue with my partners and friends in Russia.
– The editors of the ‘Eurasian Dialogue’ magazine see their main goal in the creation of an intellectual space, a kind of union of like-minded people, united by an understanding of the need to form a new architecture for a multipolar world.
It seems to us that the processes of the so-called ‘integration of integrations’ will play an important role. As you know, in 2015, Russian leader Vladimir Putin put forward the initiative to create a Greater Eurasian Partnership (GEP), which is aimed at combining of a broad integration space on the Eurasian continent. In this regard, the activities of such organizations as the EAEU, SCO, and ASEAN become important. China is a key partner of Russia, a member of the SCO, has the status of a comprehensive strategic partner in ASEAN, and has been working on the implementation of the roadmap to the Agreement on Trade and Economic Cooperation with the Eurasian Economic Union.
We know that you, Mr. Li Shoubing, a representative of large business, have been working in Russia for a long time. Could you tell if you have a feeling that in the last two years, interaction with the member countries of the EAEU and SCO has become closer in the field of economics, trade, and business in general?
– You’re right, I have such a feeling. All indicators show that trade turnover with almost all partner countries of the organizations you mentioned is growing. Just remember the $200 billion mark in trade turnover between China and Russia. After all, as we know, our countries have successfully achieved this goal, even earlier than planned. As the leaders of our states noted, by the end of 2023 trade turnover reached $227.7 billion1. But as a business owner, I especially understand the experience of the Russian-Chinese interaction, although the Chinese business, as a major international player, is interested in the entire Eurasian space.
– How do you understand the processes of ‘integration of integrations’?
– For me, as a representative of China, this is certainly a connection with the initiative of our leader, Mr. Xi Jinping, ‘One Belt – One Road’ (OBOR). It is gratifying that, in general, the proposals of our leader and the project of the President of Russia, I mean the Greater Eurasian Partnership you mentioned, essentially postulate the same values: through mutually beneficial economic cooperation, to move towards building of a new world order on the principles of equality and mutual respect. I built my business on the successful interaction between China and Russia, which benefits both sides.
– So, you and your company are a kind of practical implementation of these initiatives?
– Well, this is, of course, a strong simplification, after all, these initiatives are much larger in scale, affecting many areas of activity, and not only business, but also environmental problems, sustainable development, and in general involve the construction of a new world order.
– You are the owner of a large industrial holding, and in addition to the main profile of the business, which has been around for more than 20 years, what new projects within the framework of the mentioned initiatives (OBOR, GEP) are currently interesting? It is known that China is trying to deepen cooperation with the EAEU within the framework of existing road maps. Do these initiatives somehow affect you and your business?
– If we talk about the main profile of business, then within the framework of SLC Group activities, everything has been established long ago. Now we are working within rapidly changing realities (geopolitical, I mean). No matter if we businessmen like it or not, but those changes have the most direct impact on whole business community. That is why in general, our task is to quickly find the responses to new challenges and not allow to ruin the best practices which were built over last years.
The biggest challenges after 2022 were, of course, in the logistics and financial sectors. We had to make a lot of efforts to keep the business at the same level as before. In China itself, serious complications arose due to the pandemic, let’s not forget about this, because in most of China, quarantine was lifted only in February last year.
As for the new initiatives and projects. We are very interested in participating in the technological development of our partners in the Greater Eurasian space. China has achieved notable success in almost all areas of industrial development and production. The Russian and Eurasian market in general is very large and capacious.
And we see that many partners really need cooperation with China. We are happy to help; we could both supply ready-made technological solutions and subsequently localize production in, for example, the EAEU states.
— Is this something like the story with the Chinese auto industry?
— Not only this, but in general, if, by using the example of cars, my idea seems to be more understandable, then it can be explained in this way. But we have a broader view.
– Have these ideas already been somehow materialized?
– From our side – yes. My corporation, the SLC Group, initiated the creation of the EACIP in 2023 – the Eurasian Center for Innovative Production. The concept is as follows. Any company from Russia or other EAEU states can contact our Center with an order for some technology, and we will try to provide it. In addition, we have a team of specialists who, together with the customer, can ‘customize’ this product to suit the partner’s needs. We also have the resources to host technical experts, engineers, and technologists at our EACIP for joint work.
I have always believed that projects where teams work together, perform better, as for example, in my company: Russians and Chinese work side by side, helping each other every day.
– Have any projects already been launched on the basis of EACIP?
– Several ones were launched, but since the work is still progress, I can not tell you all the details. But we already have customers.
– Are these Russian customers?
– Yes, from Russia.
– Then we wish you good luck in the work of your Center. It is a great idea and especially relevant for Russia now.
– Thank you. We invite partners to cooperate.
– We are talking to you on the eve of the opening of the first forum ‘New Era – New Ways’ – an event held by the International Organization of Eurasian Cooperation. I assume you also know well about the activities of IOEC?
– First of all, I believe that in IOEC they know well about their activities (Mr. Li is joking), but in general – yes, the main items on the working agenda of this organization are familiar to me. IOEC is a young structure.
– That’s right. Do you think the emergence of such an organization is timely?
– Of course, yes. The initiative of the Russian leader to create a Greater Eurasian Partnership will help to deepen integration in the Eurasian space, and the IOEC supports this wonderful project. And since the structure is international, information about the goals and objectives of the GEP, thanks to this organization, will spread, as it seems to me, even faster, thanks IOEC activity. I myself learned better about a number of aspects and directions within the GEP thanks the IOEC. Therefore, of course, the emergence and efforts of this organization are highly relevant.
– What could you wish to the organizers and participants of the upcoming forum?
– Of course, good luck and fruitful work. We are always open to dialogue and collaboration with IOEC.
– Thank you, Mr. Li for the interview!
– You are welcome. I am always happy and open for the dialogue with my partners and friends in Russia.
– The editors of the ‘Eurasian Dialogue’ magazine see their main goal in the creation of an intellectual space, a kind of union of like-minded people, united by an understanding of the need to form a new architecture for a multipolar world.
It seems to us that the processes of the so-called ‘integration of integrations’ will play an important role. As you know, in 2015, Russian leader Vladimir Putin put forward the initiative to create a Greater Eurasian Partnership (GEP), which is aimed at combining of a broad integration space on the Eurasian continent. In this regard, the activities of such organizations as the EAEU, SCO, and ASEAN become important. China is a key partner of Russia, a member of the SCO, has the status of a comprehensive strategic partner in ASEAN, and has been working on the implementation of the roadmap to the Agreement on Trade and Economic Cooperation with the Eurasian Economic Union.
We know that you, Mr. Li Shoubing, a representative of large business, have been working in Russia for a long time. Could you tell if you have a feeling that in the last two years, interaction with the member countries of the EAEU and SCO has become closer in the field of economics, trade, and business in general?
– You’re right, I have such a feeling. All indicators show that trade turnover with almost all partner countries of the organizations you mentioned is growing. Just remember the $200 billion mark in trade turnover between China and Russia. After all, as we know, our countries have successfully achieved this goal, even earlier than planned. As the leaders of our states noted, by the end of 2023 trade turnover reached $227.7 billion1. But as a business owner, I especially understand the experience of the Russian-Chinese interaction, although the Chinese business, as a major international player, is interested in the entire Eurasian space.
– How do you understand the processes of ‘integration of integrations’?
– For me, as a representative of China, this is certainly a connection with the initiative of our leader, Mr. Xi Jinping, ‘One Belt – One Road’ (OBOR). It is gratifying that, in general, the proposals of our leader and the project of the President of Russia, I mean the Greater Eurasian Partnership you mentioned, essentially postulate the same values: through mutually beneficial economic cooperation, to move towards building of a new world order on the principles of equality and mutual respect. I built my business on the successful interaction between China and Russia, which benefits both sides.
– So, you and your company are a kind of practical implementation of these initiatives?
– Well, this is, of course, a strong simplification, after all, these initiatives are much larger in scale, affecting many areas of activity, and not only business, but also environmental problems, sustainable development, and in general involve the construction of a new world order.
– You are the owner of a large industrial holding, and in addition to the main profile of the business, which has been around for more than 20 years, what new projects within the framework of the mentioned initiatives (OBOR, GEP) are currently interesting? It is known that China is trying to deepen cooperation with the EAEU within the framework of existing road maps. Do these initiatives somehow affect you and your business?
– If we talk about the main profile of business, then within the framework of SLC Group activities, everything has been established long ago. Now we are working within rapidly changing realities (geopolitical, I mean). No matter if we businessmen like it or not, but those changes have the most direct impact on whole business community. That is why in general, our task is to quickly find the responses to new challenges and not allow to ruin the best practices which were built over last years.
The biggest challenges after 2022 were, of course, in the logistics and financial sectors. We had to make a lot of efforts to keep the business at the same level as before. In China itself, serious complications arose due to the pandemic, let’s not forget about this, because in most of China, quarantine was lifted only in February last year.
As for the new initiatives and projects. We are very interested in participating in the technological development of our partners in the Greater Eurasian space. China has achieved notable success in almost all areas of industrial development and production. The Russian and Eurasian market in general is very large and capacious.
And we see that many partners really need cooperation with China. We are happy to help; we could both supply ready-made technological solutions and subsequently localize production in, for example, the EAEU states.
— Is this something like the story with the Chinese auto industry?
— Not only this, but in general, if, by using the example of cars, my idea seems to be more understandable, then it can be explained in this way. But we have a broader view.
– Have these ideas already been somehow materialized?
– From our side – yes. My corporation, the SLC Group, initiated the creation of the EACIP in 2023 – the Eurasian Center for Innovative Production. The concept is as follows. Any company from Russia or other EAEU states can contact our Center with an order for some technology, and we will try to provide it. In addition, we have a team of specialists who, together with the customer, can ‘customize’ this product to suit the partner’s needs. We also have the resources to host technical experts, engineers, and technologists at our EACIP for joint work.
I have always believed that projects where teams work together, perform better, as for example, in my company: Russians and Chinese work side by side, helping each other every day.
– Have any projects already been launched on the basis of EACIP?
– Several ones were launched, but since the work is still progress, I can not tell you all the details. But we already have customers.
– Are these Russian customers?
– Yes, from Russia.
– Then we wish you good luck in the work of your Center. It is a great idea and especially relevant for Russia now.
– Thank you. We invite partners to cooperate.
– We are talking to you on the eve of the opening of the first forum ‘New Era – New Ways’ – an event held by the International Organization of Eurasian Cooperation. I assume you also know well about the activities of IOEC?
– First of all, I believe that in IOEC they know well about their activities (Mr. Li is joking), but in general – yes, the main items on the working agenda of this organization are familiar to me. IOEC is a young structure.
– That’s right. Do you think the emergence of such an organization is timely?
– Of course, yes. The initiative of the Russian leader to create a Greater Eurasian Partnership will help to deepen integration in the Eurasian space, and the IOEC supports this wonderful project. And since the structure is international, information about the goals and objectives of the GEP, thanks to this organization, will spread, as it seems to me, even faster, thanks IOEC activity. I myself learned better about a number of aspects and directions within the GEP thanks the IOEC. Therefore, of course, the emergence and efforts of this organization are highly relevant.
– What could you wish to the organizers and participants of the upcoming forum?
– Of course, good luck and fruitful work. We are always open to dialogue and collaboration with IOEC.
– Thank you, Mr. Li for the interview!
1 Editor’s note: this refers to the telephone conversation between the President of the Russian Federation Vladimir Putin and the Chairman of the People’s Republic of China Xi Jinping dated February 8, 2024 // Access mode: http://www.kremlin.ru/catalog/persons/351/events/73406