GM Forces Suppliers to Abandon China: The Great Supply Chain Shake-Up of 2025

Detroit's auto giant flexes its muscles—tells parts makers to cut ties with Chinese suppliers or risk getting left behind.

The decoupling accelerates

General Motors isn't asking anymore. The automaker's ultimatum to suppliers comes as trade tensions hit overdrive—and Wall Street still hasn't priced in the coming cost tsunami.

Just-in-time meets just-too-risky

Decades of lean manufacturing philosophy get tossed like a recalled Bolt EV battery. GM's move exposes the dirty secret of globalization: efficiency crumbles when geopolitics kick in.

Bonus finance jab: Analysts predict supply chain chaos...while quietly upgrading their '25 revenue targets. Some things never change.

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According to Reuters, General Motors has instructed thousands of its suppliers to eliminate Chinese components from their supply chains. The Detroit-based company has even given some suppliers a 2027 deadline to achieve this aim, the outlet reported, citing insider sources.

While China has lifted its mineral export curbs following the recent talks between U.S. President Donald TRUMP and Chinese leader Xi Jinping in Busan, South Korea, the automaker appears wary of the volatile nature of the trade war between the two countries and the impact of disrupted Chinese parts supplies.

GM Reassesses Chinese Parts Supply Chain

The latest disclosure comes as General Motors has been reassessing its Chinese parts supply chain after the Trump administration imposed a 10% tariff on the country earlier in the year. This is even as the carmaker reportedly initiated the restructuring of its operations in the Asian country, pulling the plug on one of its plants.

General Motors’ renewed pressure on parts suppliers to eliminate components from China also extends to simple components, the outlet said. The push comes as General Motors has joined other automakers such as Tesla (TSLA) and Toyota Motor (TM) to pressure the Trump administration to extend the United States-Mexico-Canada Agreement on trade.

Most automakers operate manufacturing plants in all three countries and rely on the unrestricted movement of vehicle parts, workforce, and finished vehicles across the countries.

Is GM a Good Stock to Buy Today?

Turning to Wall Street, General Motors’ shares currently have a Moderate Buy consensus rating. This is based on 14 Buys, two Holds, and two Sells issued by 18 analysts over the past three months.

At $72.72, the average GM price target indicates about 2% upside potential from the current trading level.