Post by : Badri Ariffin

General Motors is taking a bold step to reduce its dependence on China, asking thousands of suppliers to find alternatives for parts and raw materials. The move comes as rising geopolitical tensions and trade disputes have disrupted global automotive operations.

The automaker is setting a 2027 deadline for some suppliers to completely exit China-based sourcing, signaling a long-term shift in strategy. GM has been quietly urging suppliers since late 2024, but the effort gained urgency this spring amid escalating U.S.-China trade tensions.

The directive covers parts used in vehicles built in North America, where GM manufactures most of its cars. While the company prefers sourcing locally, it is open to suppliers outside of China. Other countries under U.S. trade restrictions, including Russia and Venezuela, are also part of the plan.

GM has already been reducing reliance on China for battery materials and chips, investing in domestic lithium mines and partnering with U.S.-based rare-earth suppliers. The current initiative, however, expands to more fundamental components and raw materials critical for vehicle production.

Executives emphasize the need for a resilient supply chain that balances cost with security. Shilpan Amin, GM’s global purchasing chief, has stressed that having control over supply sources is now as important as price considerations.

With automakers across the U.S. rethinking decades-long ties with China, GM’s strategy reflects a broader industry trend to secure production lines from global shocks, tariffs, and geopolitical disruptions.

#Business News #Economic