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Governments spying on each other isn't exactly news. But,

The geolocating device had been placed into a vehicle inside a sealed part imported from a supplier in China and installed by the vehicle manufacturer, according to the source.

This is where you vet every single component coming out of China. Assume anything coming through a Chinese supply chain is compromised and design your security systems accordingly. Encourage home grown industry and/or trade with friendlier nations.

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Hasn't the US caught China doing shit like this with their electronics for years?

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Yeah, it's been known for ages. Minimizing Chinese produced shit is imperative if you're running a security sensitive operation. This goes for both private and government entities.

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