EU needs a ‘dedicated instrument’ to unwind China dependencies, trade chief says
The bloc may force companies to diversify their suppliers, after Beijing’s use of export controls put pressure on EU industry
The EU’s trade chief has confirmed publicly for the first time that the bloc is considering a specific rule to compel companies to diversify their suppliers, as Europe looks to unwind its dependencies on China.
“Recent industrial cases, in particular supplies of chips and rare earths, have reinforced my conviction that a step change is necessary. We understand the urgency for critical minerals, but every high-risk sector must be weaned off single-supplier dependence,” Sefcovic said, in a speech at the Brussels Economic Security Forum.
Sefcovic said he would bring his recommendations to the European Council meeting of EU national leaders on June 18 and 19.
“What you can expect from us is that we kind of mapped out the situation, and I would say the assessment of the overall relationship with China will be presented to the 27 heads of state and government, and I believe that after that we will get political guidance on what concrete tools we should focus on,” Sefcovic said.