EU pushes multi-sourcing rules to curb China’s grip on critical parts

The European Union is drafting rules that would require companies to source critical components from at least three different suppliers, with a cap of roughly 30-40% from any single supplier, in an effort to diversify away from China. Targeting sectors like chemicals and industrial machinery, the plan aims to counter Beijing’s export controls and reduce Europe’s trade deficit by leveraging free-trade networks to broaden sourcing, while signaling possible punitive tariffs on Chinese chemicals and machinery as the proposal advances in early-stage discussions ahead of May and June meetings.