EU eyes pushing companies to buy components from non-Chinese suppliers - report

[EU Flag with Shipping Container]
Mahir Asadli/iStock via Getty Images

The European Union is planning to push local companies to buy critical components from at least three different suppliers to reduce the bloc's dependence on China, the _Financial Times _reported, citing two EU officials familiar with the matter.

The planned rules would set ceilings for how much components can be bought from a single supplier, expected to be about 30%-40%. The remaining parts would need to be sourced from at least three different suppliers, not all from the same country.

Sectors that would be impacted include chemicals and industrial machinery, which have complained about cheap Chinese imports flooding the market.

EU Trade Commissioner Maroš Šefčovič is also planning punitive tariffs on Chinese chemicals and machinery to stop the surge in imports.

The plan, which is in response to China's export curbs on key technologies, is at an early stage and is expected to be presented to a European Commission meeting on China on May 29.

If commissioners agree to the plans, a detailed proposal could be endorsed by EU leaders at a summit next month.

An EU official said [https://www.ft.com/content/57b4852c-f323-45b8-b8d0-5a6426dd781e] the plan would not just cover China, as some raw materials are imported from other countries, such as helium from the U.S. and Qatar and cobalt from the Democratic Republic of Congo and Indonesia.

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