Cracking Down on Chinese Manufacturing: EU Plans to Force Companies to Source Components from Non-Chinese Suppliers
According to a report by the Financial Times on Monday, May 18, the European Union is drafting plans that would compel businesses within the EU to procure key components from at least three different suppliers, aiming to reduce dependency on China.
Citing two EU officials, the Financial Times reported that these new regulations are intended as a response to Beijing’s export restrictions on critical technologies and will affect enterprises in a limited number of key sectors, including chemicals and industrial machinery. Under the proposed rules, companies would be restricted from sourcing more than about 30% to 40% of their components from a single supplier, with the remainder required to be obtained from at least three suppliers located in different countries.
According to the report, EU Trade Commissioner Maros Sefcovic is planning to impose a series of punitive tariffs on Chinese chemical products and machinery, aiming to address the EU’s daily trade deficit of up to €1 billion.
Last month, Sefcovic signed a memorandum of understanding with U.S. Senator Marco Rubio, establishing a partnership between the EU and the United States on securing production and supply of critical minerals, as part of broader efforts to diminish China’s control over raw materials vital to advanced manufacturing.
The European Commission did not immediately respond to Reuters’ request for comment.
As reported by the Financial Times, these plans, still in early stages, are set to be presented at a special European Commission meeting focused on China-related issues on May 29, and could receive formal approval from EU leaders by late June.
Source: DW
Original article: toutiao.com/article/1865516031685769/
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