New rules aim to diversify supply chains by limiting reliance on any single supplier for key industrial components.
The European Union is drafting regulations to require companies to source critical components from at least three suppliers, capping any single supplier’s share at 30-40%. The move targets sectors like chemicals and industrial machinery, which have faced competition from low-cost Chinese imports.
The proposal follows China’s export restrictions on key technologies and is part of broader efforts to reduce dependency on specific markets. It will be presented to the European Commission on May 29, with potential approval by EU leaders in June. The rules would apply to materials from multiple countries, including helium from the U.S. and Qatar and cobalt from the DRC and Indonesia.
Separately, EU Trade Commissioner Maros Sefcovic is planning punitive tariffs on Chinese chemicals and machinery to address market distortions. The measures reflect growing concerns over supply chain vulnerabilities and geopolitical risks.