China's motorcycle industry is also playing a crucial role on the market. As many of the country's private enterprises grapple amid trade tensions, our reporter Wei Lynn Tang visited one of China's largest producers of motorcycles and engines to see how it is positioned against this very backdrop.

In today's globalized world, where supply chains are so interconnected, the effects of tariffs can be far-reaching. But necessity is the mother of invention, they say and these trade tensions are prompting some companies – big and small alike – to up their game.

Zongshen Industrial Group, one of China's largest motorcycle and engine makers, is a case in point. The Chongqing company also manufactures general purpose engines, which account for about 15 percent of the group's 20-billion-yuan annual revenue. And the majority of this particular output is exported to none other than the United States.

HU XIANYUAN EXECUTIVE PRESIDENT, ZONGSHEN INDUSTRIAL GROUP "Our exports amount to 3.5 billion yuan a year, of which 3 billion goes to the U.S. In the short-term, we will share the burden of the tariff with our clients. As of now we still have some priority in negotiations, which indicates their reliance on us. In 2019, however, if and when the 25-percent tariff kicks in, our clients may start to look for alternatives."

Hu says Zongshen is taking the initiative, by laying out a step-by-step plan for its customers, saving them more time and money, and cutting out the need to look for new suppliers.

Meanwhile, Hu says his company also has a few countermeasures up its sleeve, should the trade spat persist. For one, he says, Zongshen can expand its exports into markets outside North America, such as South America, Africa, Europe and Southeast Asia, but there's more.

HU XIANYUAN EXECUTIVE PRESIDENT, ZONGSHEN INDUSTRIAL GROUP "We will also strengthen our research & development capabilities, which will boost our product innovation and financials, such that even when my profits are taxed at 25 percent, for example, we are still able to live well. We also need diversity in our product and geographical mix. In the past we used to depend on big export orders, but as China continues to upgrade its consumption habits, we now need to also focus on localizing our products."

Over the past six years, Zongshen has transformed from a pure manufacturer into a diversified group with holdings in finance and the Internet of Things. Its financial solutions include micro-loans, leasing and factoring for SMEs that are part of its industrial value chain. Meanwhile, it continues to look for new revenue streams within its manufacturing mainstay.

WEI LYNN TANG CHONGQING "There are really two ways forward for Zongshen Industrial Group: Firstly, to beef up its emerging manufacturing industries such as that of general aviation and unmanned aerial vehicles, for civil-military purposes. This may involve more overseas mergers and acquisitions. Secondly, the group plans to continue to stay on top of its game of manufacturing motorcycles and their engines."

Zongshen acquired a 49 percent share in Canada's Harbour Air Seaplanes in 2015. The stake in the world's largest seaplane company is seen as its gateway to the general aviation sector.

Zongshen now plans to transform from just manufacturing engines for seaplanes to gaining aircraft operations and management experience. The group says it's doing that with an aim of securing an industrial chain foothold in the sector.

In a nutshell, to truly elevate China's manufacturing industry to the global stage, Hu says there are three things that need to be internationalized: innovation, talent, and capital.

Zongshen is one company that does not rest on its laurels, and Hu believes the best is yet to come for China's private sector.

Wei Lynn Tang, CGTN, Chongqing.