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"Infrastructure is just a start. The cooperation between China and Sri Lanka is expected to be intensified and go far beyond that," Wickremesinghe said. "For example, the Colombo Port City will become a financial and business hub in not only Sri Lanka, but also in the whole region of the Indian Ocean."

To switch from an investment-led model to one that relies on domestic consumption, services and innovation, China is slashing industrial overcapacity, mainly in the coal and steel sectors.

Liu noted several reasons behind the woes of Britain's steel industry, including a shift of traditional manufacturing economy to the one of modern services and finance, worldwide overcapacity caused by weak demand and high costs of steel production in Britain.

At the Nuclear Security Summit in Washington D.C.

"We hope this consultation will promote strategic mutual trust and contribute to building a new type of major-country relations between China and the United States," Lu added.