The EU is planning new rules requiring European companies in sectors such as chemicals and industrial machinery to source critical components from at least three different suppliers, with limits of about 30–40% from any single supplier, aiming to reduce reliance on China. The measures respond to concerns over China’s export controls and surging imports, and are part of a broader strategy by trade commissioner Maroš Šefčovič to address the EU’s €1bn daily trade deficit and “weaponisation of trade

The EU is planning new rules requiring European companies in sectors such as chemicals and industrial machinery to source critical components from at least three different suppliers, with limits of about 30–40% from any single supplier, aiming to reduce reliance on China. The measures respond to concerns over China’s export controls and surging imports, and are part of a broader strategy by trade commissioner Maroš Šefčovič to address the EU’s €1bn daily trade deficit and “weaponisation of trade.” The proposal, still in early stage, is expected to be discussed on May 29 and could be endorsed by EU leaders in late June.