The EU plans to introduce new legislation to promote supply chain diversification and reduce reliance risks on China
On June 19, European Commission President Ursula von der Leyen stated that the EU will propose new legislation requiring companies to diversify their key supply sources in order to reduce over-dependence on a single country. She also noted that if businesses proactively increase their "de-risking" efforts, legislative measures might become unnecessary.
On the same day, EU leaders reached consensus during a summit in Brussels, authorizing the EU executive body to initiate consultations with major trade partners on "global macroeconomic imbalances" and assess whether new trade measures are needed. Although the summit statement did not explicitly name any country, it is widely believed that China is the primary focus.
Citing data, von der Leyen pointed out that progress in risk diversification among enterprises has been slow—especially following China's export restrictions on rare earths last year, which highlighted the vulnerability of critical mineral supply chains. She emphasized: "The data speaks for itself; we must rebalance our relationship."
European Council President António Costa said that engagement with China remains necessary, but the EU’s daily trade deficit with China—around €1 billion—is "unsustainable." He criticized China for not taking substantial actions to address the imbalance so far, adding, "We cannot merely raise issues without progress."
Previously, the Group of Seven (G7) announced at the Evian Summit in France on June 17 the establishment of the "Alliance for Critical Mineral Resilience and Production," along with the release of a declaration on supply chain security, aimed at reducing dependence on a single supplier. China's Foreign Ministry responded by urging the G7 to respect market economy principles and international trade rules, opposing "small-circle" behavior.
The EU’s latest legislative initiative is seen as its most recent move to strengthen strategic autonomy in the field of critical raw materials. Specific details of the proposed bill are expected to be unveiled in the coming months.
Source: sputniknews
Original article: toutiao.com/article/1868478528801792/
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