One American company hit by frictions between China and the US is the electric car-maker 'Tesla'. It plans to build a super factory in Shanghai and set up a research center in Beijing. Our Jenny Cortes Ybañez looks into Tesla's bold move amid high tensions.

Setting up shop on this side of the world could not come at a better time, especially for electric car giant, Tesla. The automaker is a major victim of the 25% retaliatory tariff imposed by China, after the US government enforced 25% duties on $34 billion dollars worth of imports from China. Shares in the company recently fell 4.3 percent after reports of supplier talks.

JENNY CORTES YBAÑEZ BEIJING "China is the world's largest new energy car market. And Beijing is not only Tesla's entry point to China, but also one of Tesla's largest markets nationwide. So it comes as no surprise that the US electric vehicle maker has set up a technology innovation center here in the capital."

China accounted for about 17 percent of Tesla's revenue in 2017. The California - based company also recently signed a deal to build a super factory in Shanghai, a move that President Donald Trump objected to. But for Tesla, having a factory in China could be favorable, given the current economic climate.

DR. ZHOU MI, DEPUTY DIRECTOR CHINESE ACADEMY OF INT'L TRADE & ECONOMIC COOPERATION CHINESE MINISTRY OF COMMERCE "They are doing something to change the costs. If there are trade barriers between China and the United States, they must face a lot of tariffs from the Chinese government if they want to export to China. And they also see that the Chinese consumption market has a very big potential so they made some wise decisions."In April when Chinese President Xi Jinping announced the country's intention to reduce import tariffs and remove ownership restrictions for foreign-operated facilities, Tesla's Elon Musk posted on Twitter that China's decision will "benefit all countries". Tesla is the direct beneficiary of this new ownership policy.

Although the China-US trade friction is affecting Tesla's vehicle prices, the company, after all, established its presence and reputation in an environment where its cars were already priced two or three times more than their local competitors. So their Chinese fans are also buying the brand's lifestyle.

JOANNA ZHAO TESLA CAR OWNER "A lot of my friends were kind of waiting to buy a Tesla car so they've been watching the Tesla company for ages and as soon as it hit the Chinese market they were like all over it and ordering one."

China's market for electric vehicles is already growing rapidly. The government is encouraging the use of new energy cars, because they want environmentally friendly vehicles to account for a fifth of total sales by 2025. That's part of China's international commitment to reduce its carbon emissions. JCY, CGTN, BJ.