General Motors seems quite upset with the ongoing geopolitical tensions disrupting its supply chain across the globe. According to a report in Reuters, America’s largest car company by markestshare General Motors (GM) GM has directed several thousand of its suppliers to scrub their supply chains of parts from China. The company’s executives have reportedly been telling suppliers that they should find alternatives to China for their raw materials and parts, with the goal of eventually moving their supply chains out of the country completely.The Detroit carmaker has told suppliers to seek alternative sources for raw materials and components, with an eventual goal of fully unwinding China-linked supply lines, the people said. Some suppliers have been given a 2027 deadline to close China sourcing, they added. GM began approaching vendors about the plan in late 2024, but the push intensified this spring as U.S.-China trade hostilities deepened.
Company executives have framed the effort as part of a broader strategy to boost supply chain “resiliency,” the people said. The U.S. auto industry has been whipsawed throughout 2025 by tariff swings under President Donald Trump, fears of rare-earth shortages and fresh concerns over chip availability — prompting companies to rethink their reliance on China, long a cornerstone of global automotive manufacturing.
Carmakers keen to insulate supply chain from geopolitical tensions
Carmakers have also been responding to Trump’s calls for domestic investment by expanding U.S. production. But executives increasingly believe that the political and economic wrangling between Washington and Beijing will endure, prompting some to accelerate moves to unwind decades-old sourcing ties.GM’s directive applies to parts used in vehicles built in North America, the company’s largest production region. While GM prefers suppliers based in the U.S., it is open to non-U.S. sources as long as they are outside China, the people said. The company’s list also flags Russia and Venezuela as restricted sources due to U.S. national-security rules, though China accounts for the bulk of the affected content.The automaker has already taken steps to reduce dependence on China for electric-vehicle batteries and semiconductors, including partnerships with a U.S. rare-earth firm and investment in a Nevada lithium project. The new initiative, sources said, covers a far wider range of basic components.Suppliers had already begun diversifying away from China during Trump’s first term to sidestep existing tariffs. But a new wave of China duties introduced this year prompted retaliatory curbs by Beijing — including April restrictions on rare-earth-containing auto parts and additional export limits in October. Those moves sent companies scrambling to secure inventory.Fresh alarm spread late last month when China halted shipments from chipmaker Nexperia following an intellectual-property dispute with Dutch authorities. The stoppage threatened production lines worldwide because Nexperia supplies inexpensive chips used throughout vehicle electronics.
Why suppliers find it tough to move away from China
For many suppliers, disentangling from China is proving expensive and technically challenging. China dominates segments such as lighting, electronics and tool-and-die manufacturing, making substitutes hard to find.“It’s a big effort. Suppliers are scrambling,” an executive at a major parts manufacturer told Reuters. Collin Shaw, head of MEMA, the Vehicle Suppliers Association, said companies have been working to “de-risk” their supply chains by reducing exposure to China and other high-risk countries. But decades of investment and specialization inside China mean the transition will be slow.“In some cases this has been 20 or 30 years in the making, and we’re trying to undo it in a few years,” Shaw said. “It’s not going to happen that fast.”
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