China expects a supplier shakeout.(News)

Byline: Charles Child

European and US suppliers are still rushing to China, driven by low manufacturing costs and the country's vast potential.

But auto partsmakers are entering a more competitive marketplace than just a year ago. A shakeout of suppliers in China is inevitable, say executives and consultants.

Within five years, "more than 20 percent of suppliers" will fail, Keith Lomason, executive director of Magna International's office in China, said at the Automotive News China Conference here.

The shakeout will increase risks for suppliers entering China. ...