General Motors (GM) has directed thousands of its suppliers to remove components sourced from China from their supply chains, targeting a complete relocation away from China by 2027, Reuters reported, citing sources familiar with the matter.
The initiative began in late 2024 and gained urgency amid the worsening U.S.-China trade conflict. GM prefers to source parts from North American factories but is also open to suppliers outside the U.S. as long as they exclude China, the report added.
The automotive firm’s (GM) push is part of a broader strategy to enhance supply chain resilience, reduce reliance on politically sensitive countries including China, Russia, and Venezuela, and address risks posed by tariffs.
However, dismantling these supply chains that have been built over decades could be challenging, as China dominates in certain automotive supply sectors such as lighting, electronics, tools, and battery materials, among others.