The Trump administration's escalation of its trade war with China has left many wondering how Chinese companies will respond. One company in southern China's Guangdong province that specializes in intelligent equipment manufacturing says it is up for the challenge. 

The company is called CYG, and more than 40 percent of its orders are from the US, with clients including big names such as Google and Facebook. Amid the latest trade frictions between China and the US, CEO Zhang Chenxing says his company remains competitive.

“We estimate that the trade war has led to an average profit loss of up to 15 percent in the intelligent automation industry, but thanks to our advanced products, we are able to stay competitive because we are the only choice for many American clients.”

Zhang says the escalation of the trade war with China has led many American companies to choose domestic suppliers, as opposed to those from other countries, including China. However, his company manages to survive as it is leading in the sector of intelligent equipment manufacturing on a global scale. 

Its competitiveness, according to Zhang, lies in research and development. It was founded in 2006 and, since the financial crisis two years later, CYG has invested nearly 200 million RMB a year in scientific research. After years of recruitment and providing stock ownership incentives, CYG now has a team of more than 600 people specializing in the development of new products. Most of them are graduates from prominent universities around the globe.

“To say you are not afraid of a trade war, you need to possess core technology. That means two parts: Science and talent. I think for intelligent manufacturing, China has an advantage in its comprehensive supply chain. But Chinese companies need to step up their level of technology and become less dependent on foreign tech.” says Zhang.

In the past, China manufactured and exported primarily low-end products, such as clothing and toys, but now companies like CYG are competing in higher value industries. The entire country is transforming itself into an advanced manufacturing powerhouse.

China aims to elevate the manufacturing sector up the value chain. Since 2015, high-tech and equipment manufacturing have been posting about 10 percent year-on-year growth. 

Zhang’s company is confident that it is ready for any competition or challenge in the near future, given its leading position in the field, as well as its price advantage. Zhang also believes firmly that the only way Chinese companies will survive or win this trade battle is to step up their game.