A New Direction in Global Supply Chains: GM and the Era of Friendly-Shoring

General Motors has taken a significant step supporting U.S. policy by telling its suppliers that they must find alternatives to China for raw materials and components. The goal is to move supply chains entirely out of China. According to Reuters, the automaker has even set a deadline for some suppliers to end their supply relationships with China by 2027.

While European automakers are increasing sourcing from China and putting pressure on their own suppliers, GM is moving in the opposite direction. For example, many Turkish suppliers face threats such as “lower your price or we will buy from China,” coming from European manufacturers. This contrast highlights the shifting geopolitical direction of global supply chains.

In the Globalization 2.0 era, companies are expected to move toward their own regions and adopt the “friendly-shoring” model. Meanwhile, the “Made in Europe” movement continues to gain strength. So, who are the friendly-shoring countries in this new landscape?

For Europe, Morocco stands out as a rising star with several ongoing investments. Türkiye also has the potential to regain its friendly-shoring position due to its strong domestic market growth and well-established supplier base. However, a highly valued Turkish Lira, inflation, and political turbulence remain significant challenges.

For the United States, the only viable friendly-shoring alternative is Mexico. Yet this status depends on ending the tariff war. The U.S. does not have the capacity for rapid reindustrialization for various reasons. Therefore, if it intends to move away from China, it needs Mexico. Vietnam and Thailand are other alternatives, but geographically they cannot match the advantage of being next door like Mexico.