General Motors has ordered thousands of its suppliers to wipe China from their supply maps, saying that it is done depending on a country whose trade relationship with America has become a daily coin toss.
According to Reuters, the push actually began in late 2024, but by early 2025 after things went into overdrive thanks to Donald Trump’s fresh batch of global tariffs General Motors decided it just wants the whole thing gone now; every bolt, every sensor, every tool touched by Chinese hands.
Reuters said some suppliers were given a 2027 deadline to get completely disentangled. And it’s not just China on the blacklist. Countries like Russia and Venezuela are also under the same red-flag restrictions due to U.S. national security rules.
Trump’s trade punches trigger factory panic
Supply chain managers have been forced to play defense non-stop amid Trump’s trade wars on auto industry. Executives at General Motors began demanding that suppliers stop looking for the cheapest option and start looking for the most secure.
“Resiliency is important; making sure you have more control over your supply chain and you know exactly what is coming where,” said Shilpan Amin, the company’s global purchasing chief, at a recent conference.
The strategy is focused on North America, where General Motors builds most of its vehicles. The company wants those parts made in the region, too. It’s fine if they come from Mexico or Canada.
But China? Off the table.
A company spokesperson allegedly refused to comment on the internal moves, but CEO Mary Barra didn’t hide the long-term direction during the firm’s quarterly call in October. “We’ve been working now for a few years to have supply chain resiliency,” she said, noting they try to buy parts in the same country where cars are assembled.
China’s latest export bans on rare-earths in April and October only added fuel to the fire. First, they cut off some critical materials used in EVs and car electronics. Then came more restrictions.
Untangling decades of China ties is a mess
And just when things couldn’t get worse, China stopped shipments from Nexperia, the Dutch-owned chipmaker supplying cheap but vital chips to the auto industry. The freeze followed a fight over intellectual property rights. Within days, warnings spread that car factories around the world could stall.
Replacing China’s manufacturing scale isn’t easy though, or cheap. General Motors has already started distancing itself, investing in a Nevada lithium mine and joining forces with a rare-earth firm in the U.S.
But this new directive hits broader, and parts suppliers are rushing to comply, but they’re still mostly struggling, since these operations that have been based in China for decades.
Collin Shaw, who leads MEMA, the Vehicle Suppliers Association, spelled it out: “In some cases this has been 20 or 30 years in the making, and we’re trying to undo it in a few years. It’s not going to happen that fast.”
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