(Yicai Global) Nov. 22 -- The China-US trade spat does affect Chinese private companies, conceded Lei Jun, founder, director and chief executive of smartphone megabeast Xiaomi, but added that the impact has already been overcome.

Lei Jun and three other private business owners talked to media at the Economic Reform and Private Sector Development press conference held yesterday in Beijing by the Information Office of China's cabinet the State Council.  

The risk of a downturn confronts the national economy, Lei noted, commenting on the trade issue, and adding China-US commercial friction does pose a challenge for the sector, but that the impact has now come under control and the Beijing-based handset mammoth still sustained 49 percent annual growth in the last quarter after already reaching its sales target of 100 million units in the first ten months, up from 70 million units in the same period last year, online handset market media Notebookcheck reported.

Lei cited the strength of Chinese manufacturing's unique industrial chain strength, noting eight year-old Xiaomi's highly innovative business model and technical breakthroughs have gained it advantages in competition. His confidence in the firm's future is steady, he said.

Xiaomi's international market revenue reached CNY22.3 billion (USD3.2 billion) with an annual increase of 113 percent, per the company latest third-quarter earnings report. Its international income made up 44 percent of total revenue, exceeding 40 percent for the first time.

Overseas revenue in the second quarter was 36 percent of total income while that last year's was 28 percent, the company said.

No Chicken Little

Beijing-based New Hope Group, a major feed, dairy and meat producer, devours mountains of soybeans and corn. It produced 20 million tons of animal feed in 2015 and is one of the world's largest poultry producers, according to the website of Oxford, UK-based tropical forest think tank Global Canopy.

Most of New Hope Group's soy is imported from the US, said Liu Yonghao, the company's chairman, but the firm is ready to weather the trade tensions nonetheless.

Fermented rapeseed dregs or other vegetable meal can replace soybean meal to some degree, so New Hope Group will study this option, Liu added.

The firm will also diversify its procurement, use new technologies, and judiciously lessen its dependence on a single raw material, he stated.

"We very much hope that there will be no such trade row and the two sides will come to an agreement, but we're prepared anyway if they can't. The sky won't fall on our heads, and the people won't have to go without their meat," Liu said.

Editor: Ben Armour