Recently, General Motors (GM) has been reported to demand that thousands of suppliers remove Chinese parts from their supply chains and gradually shift their supply chains out of China. This move has attracted widespread attention, reflecting the re-evaluation of supply chain security and stability by automakers amid global geopolitical tensions.

Motivation and Objectives

GM's decision was not made on a whim. As early as the end of 2024, GM had communicated relevant instructions to some suppliers. However, the escalation of US-China trade friction in the spring of 2025, especially the Trump administration's tariff policies and restrictions on imported Chinese parts, accelerated this process. GM executives stated that this move is an important part of the company's strategy to enhance the "risk resilience" of its supply chain.

GM is asking suppliers to find alternatives to Chinese raw materials and parts, with the ultimate goal of completely relocating the supply chain outside of China. Some suppliers have been given a deadline of 2027 to terminate their procurement relationships with China. This adjustment mainly targets parts and raw materials used in vehicles produced in North America.

GM CEO Mary Barra has said that the company is working to move more of its supply chain to the US and implement a "source locally, produce locally" strategy in other regions. For example, GM has partnered with a US-based rare earth company and invested in a lithium mine in Nevada to secure key materials for future electric vehicle batteries. This adjustment covers not only high-tech components such as battery materials and semiconductor chips but also extends to more basic parts and materials.

Industry Impact and Future Outlook

China has long been a significant supplier of global automotive parts and raw materials. However, the US government's restrictions on imported parts, citing tariffs and national security, have forced companies like GM to reduce their dependence on Chinese parts. Nevertheless, completely decoupling from the Chinese supply chain is no easy task. It has been revealed that GM has been implementing risk-reduction operations for years, not specifically targeting China or any particular region. In addition, joint ventures like SAIC-GM have always adhered to the principle of "source locally, produce locally."

GM's supply chain adjustment is an important measure to cope with geopolitical risks and enhance supply chain resilience. However, this process also faces many challenges, including finding reliable alternative suppliers, ensuring the stability and cost-effectiveness of the supply chain, etc. A GM spokesperson has stated "no comment" on this matter, neither denying nor confirming the details.

Conevo Distributor: Offering Highly Reliable Chip Solutions

With the adjustment of global supply chains and changes in geopolitics, the demand for alternative chips in the automotive industry is increasing day by day. Conevo semiconductor distributor is dedicated to providing highly reliable alternative chip solutions for the automotive industry. Conevo offers a wide range of chips, covering a broad category from basic components to high-end technology chips. Today's selected popular IC chips include:

● XC7A35T-L1FTG256I: This is a high-performance FPGA chip, suitable for complex logic control and signal processing, and is widely used in automotive electronic systems.

● AD5328BRUZ: This is a high-precision digital-to-analog converter (DAC), specifically designed for applications requiring high-precision signal processing, such as automotive instrument panels and sensor interfaces.

● AT91RM9200-QU-002: This is a microcontroller based on the ARM architecture, integrating multiple peripheral interfaces. It is suitable for automotive electronic control units (ECUs) and provides efficient and reliable embedded solutions.

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