EU Considers New Supply-Chain Rules to Reduce Dependence on China
The European Union is reportedly drafting new regulations that would require companies in strategic sectors to diversify their supply chains away from China. This move marks a shift from the EU's previous 'de-risking' strategy to a more binding industrial policy. The proposed rules would mandate companies in sectors such as chemicals and industrial machinery to source critical components from at least three suppliers, limiting reliance on any single supplier to 30-40%. This initiative is driven by concerns over China's dominance in supply chains for critical minerals, rare earths, and other essential components, which are vital for defense, energy transition technologies, and high-end manufacturing. The EU Trade Commissioner, Maroš Šefčovič, is also considering additional trade measures, including punitive tariffs on Chinese goods, to address the trade deficit with China. 
