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In an effort to tackle the company’s reliance on Chinese markets, American automotive giant General Motors is urging its suppliers to remove Chinese parts from their supply chains.
Executives at the company have warned suppliers to rethink where they are sourcing raw materials and components used in the automotive manufacturing process, demanding that ties with China be dissolved as early as 2027.
The decision follows a recent escalation in U.S.–China trade disputes, which triggered a domino effect of tit-for-tat tariffs on Chinese and American goods.
The recent Nexperia crisis has also heightened the sense of urgency, exposing the vulnerability of global supply chains due to an overreliance on Chinese markets for vital components.
GM has emerged as one of the most proactive companies in cutting its ties with China and refocusing automotive production on the domestic sphere—a decision in line with the Trump administration’s push to stimulate national output and domestic manufacturing.
Among such projects is a recent partnership with a U.S.-based rare-earths company investing in a lithium mine in Nevada in 2024, which will specialise in the production of EV batteries.
CEO Mary Barra spoke at GM’s quarterly review in October, unveiling the company’s commitment to improving the robustness of its supply chains:
“We have been working now for a few years to have supply chain resiliency.”
Shilpan Amin, GM’s Global Purchasing Chief, echoed this sentiment:
“Resiliency is important—making sure you have more control over your supply chain, and you know exactly what is coming from where.”
The U.S. and China reached a resolution in late October, agreeing to loosen some restrictions and roll back tariffs on certain goods. Despite this apparent easing of tensions, many automakers are still rethinking their global supply chains, having witnessed the fragility of the market first-hand.
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