Toto Wolff has said Mercedes have adopted an underdog mentality as they prepare for a "ping-pong battle" with Ferrari this season.
Ferrari and Mercedes have traded blows in the opening two races and Wolff believes that pattern will continue to develop as the season progresses.
“China was a great way to hit back in the battle with Ferrari," Wolff said via Mercedes' official website.
"We are very close on pace and I expect a bit of a ping-pong battle through the season, depending on the track. That’s exciting for everyone.
“What we have in 2017 is the perfect situation for the fans and also for us as a team. We are all racers and we are all properly excited for this fight.
“Two races into the season and now it is 1:1 between Mercedes and Ferrari. And after racing on a very different circuit, in very different conditions, it’s clear that we are very closely matched – and that small margins will make the difference.
“Our one point lead in the constructors’ championship is anything but a comfortable margin. We need to – and we will – keep working with everything we have got to develop our car, correct our errors and continue improving.
"Our mindset is that of the underdog – not the Champion. And the fight has just begun…"