Photo provided by Fuyao Glass to NBD

May 15 (NBD) -- Fuyao Glass Industry Group Co., Ltd. (Fuyao Glass), the world's largest automotive glass provider, has expanded its footprint to cities of many countries, including America and Russia. Against the background of trade tensions between China and the U.S., does its U.S. plant go well? On May 4, Cao Dewang, founder of the company, accepted NBD's interview.

NBD: What do you think of the "China-U.S. trade war" and how will Fuyao Glass respond to it?

Cao: There is not such thing as a trade war. Trade is literally understood as the act of buy and sell, which could not be done by a single party. Trade frictions will have no material impact on the company. Fuyao Glass sells products to those who are willing to buy. For example, it cost Fuyao Glass over 200 million yuan (31.5 million U.S. dollars) to set up a plant in the U.S. with an annual production capacity of 1 million sets of glass, which may take several years to cover the costs. So we don't do one-time trade, and Americans won't either.

NBD: Will Fuyao Glass embrace new economy or invest in unicorn companies like smartphone maker Xiaomi, which has filed for Hong Kong IPO and struck a deal with billionaire Li Ka-shing's CK Hutchison Holdings Ltd in the past week?

Cao: Frankly speaking, I won't. But I'd like to see how Li does it. I'm over 70 years old and don't want to risk too much. I do have seen many projects in earlier years, but I'm only interested in a very few of them.  

NBD: For a long time, many investors in the A-share market don't care about dividends, but short-term profits from big price changes. How do you think of this phenomenon?

Cao: I am a little worried about the capital market. Many investors wish their stock rise to up limit and sell them the next day, which forces listed companies to fabricate financial results and make sensational news. Sometimes, the capital market is just like a casino.

Our company has always been insisting on the rule that management personnel are prohibited to manipulate the stock, either by colluding with outsiders or in other ways. We respect both new and old investors and always seek for the maximum level of interests for employees and shareholders.

Email: tanyuhan@nbd.com.cn