Article at a glance:

Can US auto suppliers stay ahead of Chinese rivals?

• As imports of Chinese auto parts rise, so does concern about the competitive threat China poses to the auto industry, particularly US parts suppliers.
• China’s large pool of low-cost labor gives the country a significant advantage in manufacturing labor-intensive components, even when higher shipping costs are included.
• But the near-term threat is exaggerated. Many parts are too bulky, fragile, or sensitive to quality glitches to be shipped over long distances, and Chinese suppliers still lack crucial engineering know-how.
• US parts makers have time to prepare for the full force of Chinese competition by making their factories more efficient and by concentrating on product areas where they have a technology edge.