General Motors Accelerates Supply Chain Decoupling from China Amid Trade Uncertainties
General Motors is pressuring suppliers to remove Chinese components from their supply chains by 2027, according to internal documents seen by Reuters. The Detroit automaker's directive follows heightened trade tensions between Washington and Beijing, including recent threats of rare earth export controls by China.
Though temporary truces emerged during the Trump-Xi summit in Busan, GM appears unconvinced of lasting stability. The company had already begun restructuring its Chinese operations earlier this year after U.S. tariffs took effect, including shuttering a manufacturing facility.
This supply chain recalibration reflects broader corporate anxieties about geopolitical risks. Automakers remain particularly vulnerable to disruptions in critical mineral supplies, with China controlling over 80% of global rare earth processing capacity.
