EU Urges 27 Nations' Firms to Diversify Supplies as China Threatens Retaliation
Updated
Updated · Euronews · May 22
EU Urges 27 Nations' Firms to Diversify Supplies as China Threatens Retaliation
3 articles · Updated · Euronews · May 22
Stéphane Séjourné told EU companies after talks with the bloc’s 27 trade ministers not to keep 100% of supplies in one country, warning Brussels may go beyond guidance if firms do not adapt.
China’s repeated threats and its past curbs on rare earth and chip exports drove the warning, with those inputs critical for Europe’s green tech, defence and auto sectors.
The Commission is already drafting rules that would force carmakers to source chips from multiple suppliers after last year’s Nexperia dispute helped trigger shortages in EU industry.
Brussels is also weighing tougher measures against China, including the Industrial Accelerator Act and a Cybersecurity Act, despite Beijing’s warnings of retaliation.
An orientation debate among EU commissioners is set for May 29 as the bloc’s trade deficit with China keeps widening and supply security moves higher on the agenda.
As EU-China trade sours, which nations will rise as the world's next factory floor?
Can the EU's green transition survive a divorce from China's critical supply chains?
From De-Risking to Decoupling: How the EU’s New Laws Target China’s Dominance in Critical Raw Materials
Overview
The European Union is making a major shift in its supply chain strategy, moving from voluntary 'de-risking' to legally requiring companies to diversify away from Chinese suppliers. This urgent change is driven by concerns over national security and the EU’s heavy dependence on China for critical raw materials. New rules will end the era of recommendations, especially for industries like automotive, and instead enforce mandatory transparency and proof of risk prevention. By transforming supply chain diversification into a legal obligation, the EU aims to reduce vulnerabilities and strengthen its economic resilience in a changing global landscape.