EU to force companies to buy components from non-Chinese suppliers, FT reports
The European Union is planning to implement new rules requiring companies to source critical components from multiple suppliers outside of China. This initiative aims to reduce the bloc's dependence on Chinese suppliers, particularly in key sectors like chemicals and industrial machinery. The proposed legislation will limit the percentage of components that can be sourced from a single supplier and promote diversification in supply chains.
- ▪The EU plans to force companies to buy critical components from at least three different suppliers.
- ▪Companies will be limited to sourcing 30 to 40 percent of components from a single supplier.
- ▪European Union trade commissioner Maros Sefcovic is considering punitive tariffs on Chinese chemicals and machinery.
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EU to force companies to buy components from non-Chinese suppliers, FT reportsSign up now: Get ST's newsletters delivered to your inboxThe plans will force companies in the bloc to buy critical components from at least three different suppliers in a bid to reduce reliance on China.PHOTO: REUTERSPublished May 18, 2026, 02:15 PMUpdated May 18, 2026, 02:15 PMThe European Union (EU) is drawing up plans to force companies in the bloc to buy critical components from at least three different suppliers in an attempt to reduce reliance on China, the Financial Times reported on May 18.The new rules would affect businesses in a handful of key sectors like chemicals and industrial machinery, the report added, citing two EU officials familiar with the matter.Under the new legislation, companies would…
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