The EU is drawing up plans to force European companies to buy critical components from at least three different suppliers, in a bid to reduce the bloc’s reliance on China.
The new rules would affect businesses in a handful of key sectors such as chemicals and industrial machinery, which have complained about a surge in cheap Chinese imports, according to two EU officials familiar with the matter. The proposals come in response to Beijing’s export restrictions on key technologies.
The new law would set ceilings, expected to be about 30-40 per cent, for what can be bought from a single supplier. The rest of the components would need to be sourced from at least three different suppliers, not all from the same country.