BUSINESS

General Motors’ China Venture Feels the Pinch as Tariff War Bites

Published: Apr. 24, 2025 4:32 a.m. GMT+8

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With the joint venture pact between SAIC and General Motors due to expire in 2027, renewal negotiations are underway, amid rising geopolitical uncertainty

Escalating trade tensions and rising tariff barriers between China and the United States have caught global auto giants’ China ventures — such as SAIC General Motors Corp. Ltd. — in the crossfire.

Soaring tariffs between the two countries are causing problems for auto joint ventures, making it harder to import key components into China and, more critically, driving up the cost of exporting to the U.S. market.

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U.S.-China trade tensions and tariffs are disrupting SAIC-GM’s operations, complicating imports, exports, and increasing costs, though 95% of parts are locally sourced.
In 2024, China exported 107,000 vehicles to the U.S., 80% from GM and Ford’s China ventures; new 100% U.S. tariffs halted Chinese EV exports.
SAIC-GM’s sales fell 56.5% in 2024, but the joint venture is adapting with new EV models and management changes ahead of its 2027 contract renewal.

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Who’s Who

SAIC General Motors Corp. Ltd.: SAIC General Motors Corp. Ltd. (SAIC-GM) is a joint venture between General Motors and China’s SAIC Motor. Amid escalating China-U.S. trade tensions, the company faces challenges from rising tariffs, declining domestic sales, and competition from local EV makers. Despite sourcing 95% of its parts locally, SAIC-GM’s U.S. exports are pressured by new tariffs. The venture is negotiating renewal of its partnership, adjusting strategies, and launching both EVs and gasoline models to adapt.

General Motors Co.: General Motors Co. is a key partner in SAIC-GM, a flagship joint venture with China’s SAIC Motor Corp. Ltd. The company faces challenges from China-U.S. trade tensions, rising tariffs, and declining sales in China. Despite sourcing most parts locally and maintaining profitability, the venture’s exports and domestic business are under pressure. GM’s China-based operations account for a significant share of Chinese vehicle exports to the U.S. Renewal talks for the venture are ongoing.

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. is a major Chinese automotive manufacturer and the joint venture partner of General Motors in SAIC General Motors Corp. Ltd. (SAIC-GM). The company sources about 95% of SAIC-GM's auto parts locally in China. Amid China-U.S. trade tensions, SAIC Motor and GM are negotiating to renew their joint venture pact, which is set to expire in 2027, while adjusting their strategies to cope with market and geopolitical challenges.

Ford Motor Company: The article mentions that in 2024, 80% of the 107,000 vehicles China exported to America came from GM and Ford’s China-based operations. However, it does not provide further specific details about Ford Motor Company’s activities, strategies, or responses to the current U.S.-China trade tensions.

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What Happened When

2015：: SAIC-GM began shipping certain gasoline-powered models from China to the U.S.

2024：: SAIC-GM undertook significant corporate adjustments including management shuffles and price cuts to adapt to the evolving market.

2024：: China exported 107,000 vehicles to America, with 80% coming from GM and Ford’s China-based operations.

2024：: SAIC-GM’s sales in China fell 56.5% year-on-year to 435,000 units.

September 2024：: The Biden administration imposed a 100% tariff on Chinese-made electric vehicles, bringing Chinese automakers’ EV exports to the U.S. to a standstill.

First quarter 2025：: SAIC-GM’s sales dipped 2.2% year-on-year to 109,000 units, but the company exceeded its performance targets and maintained profitability.