EU plans new rules to reduce reliance on Chinese suppliers
The European Union is drafting legislation to force companies in key sectors like chemicals and machinery to diversify their supply chains. Under the new rules, businesses would be limited to sourcing no more than 40% of components from a single supplier to reduce trade risks.
The European Union is drafting rules to force companies to diversify supply chains away from China, limiting single-supplier components to 40%. The mandate targets critical sectors including chemicals and industrial machinery to reduce strategic dependencies. This comes as China uses its control of mineral processing as leverage in trade negotiations.
### Diversification Mandates for Key Industries The proposed legislation would require firms to source components from at least three different suppliers not based in the same country, according to two EU officials familiar with the matter. Businesses would be restricted to purchasing between 30% and 40% of their parts from any single provider. These measures aim to counter export curbs on minerals essential for semiconductors, electric vehicles, and advanced weapons.
