EU plans new ‘diversification’ rules to cut dependence on China

The European Union is preparing rules that would require companies to diversify sources for strategic supplies, reducing reliance on China. Draft proposals could limit firms to sourcing 30% to 40% of components from one supplier, while requiring suppliers from different countries. The measures may cover chemicals, industrial machinery and strategic sectors. Officials say the initiative responds to China’s dominance in mineral processing and export restrictions. The plans remain at an early stage and require approval from EU institutions and states.