There are concerns about the material impact of the ongoing China-US trade war on listed American companies in China. Walmart from the retail sector and Starbucks from food and beverages are two prime examples. But how are American automakers faring, and what do the shifting trade dynamics mean to them? CGTN's Xia Cheng reports.  

American automakers, just like their global peers, are going big in China and aren't returning home.

The reasons for that are the ongoing China-US trade war and China's economic slowdown.

General Motors is America's biggest automaker and it saw its China sales fall 15 percent in the third quarter of the year. That was the first drop since 2017.

China is the world's largest auto market and it's key for GM. The company sold over 4 million vehicles in China last year. That was even more than it sold in the North American market.

Meanwhile, Ford, has lost 1 billion US dollars in profits from tariffs on metals imported to the US.

That's why the second largest US automaker is also moving against market headwinds — It's looking to make more cars in China, to avoid tariffs and to keep the prices of its vehicles competitive.

It's also expanding partnerships in China.

A Ford dealer says 2019 is critical for the automaker's China sales.

ZHU WENBIN SALES DIRECTOR, SHANGHAI YONGDA TONGBAO AUTO SALES "We have new Changan Ford models coming to the Chinese market, including a new Focus this year and two SUVs in the first half of next year. They will beef up our sales. Our annual sales target has always been 1 million cars a year."

Meanwhile, Tesla has also secured a location for its new Shanghai factory, which is critical to overcome Tesla's supply snags.

Alex Xie of consulting firm BCG says manufacturing more cars in China makes more sense.

And the market is huge for auto technology, especially AI.

The impact from the trade war on consumers can be buffered for the time being.

ZHU WENBIN SALES DIRECTOR, SHANGHAI YONGDA TONGBAO AUTO SALES "So far our actual sales of imported cars are not affected. The price increase as a result of the tariffs can be covered by Ford China to minimize the impact on consumers. But if the trade war continues to worsen, tariffs would become too much for Ford to bear, and our cars would become much more expensive in China." 

ALEX XIE PARTNER, BOSTON CONSULTING GROUP BCG "I think in the long term, China will welcome all new tech coming to China because that's benefiting the whole industry, benefiting the customers and also benefiting the traffic. And I still believe the current tension between US and China are still temporary, eventually two parties will reach consensus. When that comes, companies with best tech, with best understanding of Chinese customers, with best commitment to China will succeed."

Besides short-term trade and economic hiccups, the notoriously fickle Chinese consumers are here to stay. So what makes an auto company stand out in China?

ALEX XIE PARTNER, BOSTON CONSULTING GROUP BCG "First of all, they still have to work closely with partners. The partners are already very strong for them. And they should leverage that going forward. The second thing is for sure keep up localization. What I'm saying localizaion is not only about supply chain, but more about design and engineering, making sure that products really meet the needs of local customers.

Xia Cheng, CGTN, BEIJING.