SHENZHEN, China—There is an unintended consequence of the White House’s trade battle with China: Companies in the Pearl River Delta, the center of China’s manufacturing might, are accelerating toward making higher-quality products to compete against American goods.

In response to tariffs, which make his goods more expensive, Michael Lu of LTS Group plans to trim costs by using more robots at his plants, which make lamps, bulbs and other lighting products sold at American stores. He is also moving low-skilled work elsewhere in Asia.

Left in Shenzhen will be his research and development operations and a team of skilled workers who make his company’s more complex products, such as smart lighting.

“The U.S. tariffs are pushing China toward making the higher-end stuff,” Mr. Lu said as he walked past red-uniformed workers assembling table lamps in his Shenzhen factory. “It’s helping China be more competitive down the road.”

After building its economy on a mountain of inexpensive exports, from socks to toys to steel, China has been on a mission to upgrade its output. Over the past few years, Beijing has embarked on a campaign to ship low-skill factory work out of the country and build an economy that uses advanced manufacturing techniques to produce high-value products.