General Motors Co. has directed several thousand of its suppliers to remove parts from China from their supply chains, according to four people familiar with the matter, reflecting automakers’ growing frustration over geopolitical disruptions to their operations. Reuters first published this information.
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GM executives have been telling suppliers that they must find alternatives to China for their raw materials and parts, with the goal of eventually moving their supply chains out of the country entirely. The automaker has set a 2027 deadline for some suppliers to resolve their relationships with Chinese sourcing.
GM approached some suppliers with guidance in late 2024, but the efforts took on new urgency in the spring of 2025, during the early days of the escalating trade battle between the United States and China. GM executives said this is part of a broader strategy to improve the “resilience” of the company’s supply chain.
Geopolitical tensions between the two superpowers have left auto industry executives in sorting mode throughout 2025. Intermittent tariffs imposed by US President Donald Trump and industry panic attacks over potential bottlenecks in rare earth elements and computer chip shortages have prompted auto companies to rethink their relationships with China, which has long been an important source of parts and raw materials.
Automakers and suppliers have responded to Trump’s pressure for investment and jobs by taking early steps to expand US factory operations. But industry executives say they also sense a long-term, bipartisan shift in U.S.-China relations, and some are moving to dismantle ties with China that have been in the making for decades.
GM’s efforts target parts and materials used in automobiles manufactured in North America, where the company manufactures the majority of its vehicles globally. GM prefers to source parts from North American factories for cars manufactured in the region but is open to non-American supply lines outside of China.
GM’s directive includes several other countries that, such as China, are subject to US trade restrictions due to national security concerns, such as Russia and Venezuela. China is the largest exporter of auto parts on the list.
The automaker was already among the most active auto companies in weaning itself off dependence on China for battery materials and computer chips. It has partnered with a US-based rare earth company and invested in a lithium mine in Nevada for future electric car battery materials, for example. But the latest effort is broader and includes more components and basic materials.
Source: Market intelligence platform IndexBox
