GM abandons parts of Chinese origin

General Motors is demanding that several thousand of its suppliers completely abandon components from China, Reuters reported citing four sources.

The demand arose amid increasing dissatisfaction among automakers with disruptions due to trade conflicts between countries.

According to sources, GM management strongly recommended suppliers seek alternatives to China in terms of sourcing raw materials and components. It is reported that the American automaker has set a deadline for some suppliers until 2027. By that time, they will need to sever their ties with China.

GM approached suppliers at the end of 2024, but the initiative gained particular relevance this year, in the early days of the escalation of the trade war between the US and China. GM management stated that this is part of a broader strategy to increase the «resilience» of the company's supply chain.

Geopolitical tensions between the US and China have put automotive company executives in reassessment mode for all of 2025. The constant imposition and lifting of tariffs by US President Donald Trump and industry panic spikes over potential issues with rare earth metals and chip shortages have forced automotive companies to reconsider their ties with China, which has long been an important source of components and raw materials.

According to sources, GM prefers to purchase parts manufactured in North America, where the company produces most of its vehicles. However, the company is open to sourcing from other regions and countries, excluding China, Russia, and Venezuela.

Source: Reuters