General Motors (GM) has ordered thousands of its suppliers to eliminate Chinese-made components from their production chains, reflecting the auto industry’s growing anxiety over deepening US-China trade tensions and supply disruptions, according to multiple sources familiar with the matter.

Executives at the Detroit automaker have instructed suppliers to identify and replace Chinese sources for raw materials and parts, aiming to phase out reliance on China entirely by 2027 for certain categories, insiders said. The company began reaching out to suppliers in late 2024, but the initiative accelerated earlier this year as Washington and Beijing exchanged new rounds of tariffs and export restrictions.

The push is part of GM’s broader strategy to strengthen supply chain “resiliency” and reduce exposure to geopolitical volatility. “Resiliency is important — making sure you have more control over your supply chain and you know exactly what is coming where,” said Shilpan Amin, GM’s global purchasing chief, in a recent industry conference.

Trade volatility reshapes automaking

US President Donald Trump’s renewed tariffs on Chinese imports and Beijing’s countermeasures have left carmakers scrambling to shield themselves from market shocks. In April, China restricted exports of rare-earth materials critical to car manufacturing, prompting a wave of stockpiling among automakers. Later in the year, new curbs on semiconductor exports triggered warnings of potential factory shutdowns worldwide.

Although Washington and Beijing agreed in October to ease certain trade barriers following talks between Trump and Chinese President Xi Jinping, automakers remain wary of future disruptions. Executives describe the trade environment as unpredictable and costly for an industry that plans vehicle production years in advance.

GM’s directive primarily targets vehicles built in North America, where the company produces most of its global output. While GM prefers to source parts from US and regional factories, it remains open to suppliers from countries outside China not subject to US sanctions. The company’s list of restricted sources also includes Russia and Venezuela.

A long road to diversification

Shifting supply lines out of China will not be easy. Industry experts note that Chinese firms dominate key sectors such as lighting, electronics, and die-casting, making it difficult to find alternatives without major investment. “It’s a big effort. Suppliers are scrambling,” one executive told reporters.

Collin Shaw, head of MEMA, the Vehicle Suppliers Association, said reversing decades of supply chain integration will take time. “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,” he said.

GM has already taken steps to localize production of critical materials. The company has invested in a lithium mine in Nevada and formed partnerships with US-based rare-earth producers to secure inputs for electric vehicle batteries. CEO Mary Barra said in October that GM’s goal is to “source parts in the same country where it builds the cars, when possible.”

'Only strength to manage relations'

Trump said China avoids challenging the United States because of the country's military and economic strength, insisting that any productive engagement with Beijing must come from a position of dominance.

In an interview with Fox News, Trump commented on the current state of US-China relations, emphasizing the importance of power dynamics in foreign policy. According to Trump, China  "does not want to mess" with the US because it has "tremendous strength."

He continued, "I get along great with China, but the only way you are going to get along well with China is if you deal from a position of strength. We have tremendous strength because of tariffs. We have tremendous strength because of what I have done. I have rebuilt our military. They have a lot of missiles, but we have a lot of missiles too, and they do not want to mess around with us."

China lifts ban on exports of key 'dual-use items' to US

China's Commerce Ministry announced on Sunday that it has suspended a ban, effective immediately from Sunday until November 27, 2026, on approving exports of "dual-use items" related to gallium, germanium, antimony, and super-hard materials to the United States.

The ministry also suspended the stricter end-user and end-use purpose checks, which were announced alongside the ban, for exports of dual-use graphite to the United States.

On Friday, China suspended other export controls, including expanded curbs on certain rare earth materials and lithium battery materials, initially imposed on October 9.

Tensions between China and the United States continue to shape global trade dynamics, with recent developments extending far beyond tariffs into strategic competition over technology and critical minerals. The United States Trade Representative (USTR) has reopened an investigation into China’s compliance with the 2020 “Phase One” trade agreement, citing ongoing concerns over intellectual property rights and unmet purchasing commitments.