General Motors (GM) has instructed several thousand of its suppliers to remove Chinese parts and materials from their supply chains, four people familiar with the matter said, Reuters reported.
The move reflects the automaker’s growing concern over geopolitical disruptions and a push to build a more secure and self-sufficient manufacturing base in North America.
The Detroit-based carmaker has reportedly given some suppliers until 2027 to end their sourcing ties with China, according to two of the people.
The directive, first communicated to certain vendors in late 2024, has gained new urgency in recent months as trade tensions between the United States and China escalate under President Donald Trump’s renewed tariff measures.
Executives at GM have described the initiative as part of a broader plan to bolster “supply chain resiliency.”
Suppliers were told to identify alternatives to China for raw materials, components, and electronic parts that feed into vehicles built in North America, the company’s largest production region.
Supply chains caught in US-China trade crossfire
The push comes as geopolitical friction between Washington and Beijing continues to reshape global trade.
The auto industry has been on alert through 2025 amid unpredictable tariff announcements, rare-earth material bottlenecks, and chip supply disruptions.
Automakers have responded to Trump’s call for more domestic manufacturing by expanding US operations and sourcing, though executives privately acknowledge that the shift is being driven by a deeper, bipartisan reevaluation of ties with China.
The GM effort goes beyond electric-vehicle batteries and semiconductors, encompassing basic components such as fasteners, cables, and plastics.
The company has already begun working with US-based firms to secure supplies of rare-earth elements and lithium, including investments in a Nevada lithium mine.
The company’s latest directive also includes other countries under US trade restrictions, such as Russia and Venezuela, though China remains by far the largest source of affected parts.
GM prioritizes resilience over lowest cost
While GM declined to comment on its supplier communications, executives have publicly stressed the importance of localizing supply chains.
“We’ve been working for several years to strengthen supply chain resiliency,” CEO Mary Barra said during the company’s third-quarter earnings call in October.
She noted that GM aims to source more components in the same countries where it assembles vehicles, wherever feasible.
Shilpan Amin, GM’s global purchasing chief, echoed those sentiments at a recent industry conference, saying the risk of supply disruptions had changed the company’s procurement philosophy.
“Resiliency is important — making sure you have more control over your supply chain and you know exactly what is coming from where,” Amin said.
GM’s sweeping plan to unwind its reliance on China marks one of the most significant shifts in the global auto industry since the US-China trade war began in 2018.
If successful, it could set a precedent for other manufacturers facing mounting geopolitical and national security pressures.
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