If one thing has come out of this escalating US-China trade spat, it may be that Chinese manufacturers realize the importance of core technology breakthroughs./CGTN photo
Chinese manufacturers are facing a lot of uncertainty due to the escalating U.S.-China trade friction. But many believe core technology breakthroughs can help them expand their global market share.
Most automakers use magnesium alloys to make their cars lighter. Wanfeng Auto Holding Group has become one of the world's largest suppliers of the mixtures.
Chen Bin, CEO of Wanfeng Auto Holding Group told CGTN that for market share, the top three is enough for his company. But as far as technology is concerned, they need to have the best. For example, their magnesium alloy already accounts for over 68 percent of the global market share, but their skill is also the best, this is their core technology.
With advanced technologies and market readiness, Chen's company isn't being overly strained by the trade war. He said if Chinese manufacturers want to maintain sustainable growth, they need to grasp key skill-sets in specific sectors.
As more Chinese companies go global, how to keep improving their core competitiveness has been a major challenge.
While Chen's company has also had its eye on China's burgeoning general aviation market, it doesn't have the expertise to make a proper go of it.
On the other hand, Diamond Aircraft from Austria has some of the best technologies in the sector, but it is struggling to expand its overseas market. So the two sides see a huge opportunity.
Bernd Lechner, project manager of China Operations from Diamond Aircraft Austria Industries said they simply don't have the resources in Austria - no space nor people. And in this kind of cooperation, together they can make a company such as Wanfeng and Diamond really big.
Wanfeng acquired Diamond to speed up the Austrian side's manufacturing and marketing in Asia.
Meanwhile, Diamond has also sent several technical experts to train and improve the skills of the Chinese staff.
Chen said to buy a company is easy, as long as you have resources, and the other side is willing to sell. But more importantly is how to integrate, how to lead the company into a higher place and make more contributions to the whole industry.
Chen said, as companies, they could not change the policies or regulations of any country or organization, so they would only focus on integrating global resources and providing better products and services for the world's consumers.
