BMW's iconic kidney-shaped grills have amassed a huge following in China. Since the establishment of the German carmaker's local joint venture with Chinese automaker Brilliance 15 years ago, BMW-Brilliance's plants in China's northeastern Shenyang City have become the brand's largest production base, producing almost 400,000 units in 2017, exceeding BMW's gross production in Spartanburg, South Carolina, and in Dingolfing, Germany.

To optimize resource allocation, parts of BMW-Brilliance's exteriors are made by its Chinese partner Shenyang Minghua Mould and Plastics Technology (SMMPT), a subsidiary of Shenzhen listed Jiangnan Mould and Plastic Technology (JMPT). And the firm has been producing exterior parts as front and rear bumpers for China-made BMW models including the 3 and 5 series. 

Its business enjoyed rapid growth due to orders from BMW, and the firm's annual income has gone from 25 million yuan in 2007 to over 600 million yuan in 2017, presenting a 25-fold increase. And it took the designing task for the product on Chinese market in 2012.

"BMW still owns the design for the styling but we own the intellectual property rights for the technology used in the production. We are collaborating with BMW to develop products based on its style, high standards and market needs," said Cao Kebo, the General Manager of JMPT, which owns Shenyang Minghua.

Chinese firms are becoming increasingly aware of international rules, he added.

SMMPT is just one of BMW's 359 suppliers in China. 

The automaker also puts an emphasis on observing international guidelines including respect for IP rights. 

"My understanding is that all of our suppliers support IP rights. If they did not, we would terminate our business relationships with them," said Benedikt Hartmann, the vice president for purchasing and quality management at BMW-Brilliance Automotive.

The German luxury carmaker already took a hit from the trade tension that made its high-end X-series SUVs, entirely made in its Spartanburg plant, increase in price. Shenyang Minghua also sees some impacts from the dispute but its American factory next to BMW's Spartanburg plant just started rolling out parts in early August.