Overview
- Brussels is drawing up plans, reported Monday by the Financial Times, to cap any single supplier at about 30–40% and require companies to buy key parts from at least three suppliers based in different countries.
- The proposal is due to be presented at a European Commission meeting on China on May 29, with potential endorsement by EU leaders in late June if commissioners back the plan.
- EU Trade Commissioner Maros Sefcovic is also preparing punitive tariffs on Chinese chemicals and industrial machinery, according to the FT, in a bid to counter what officials call China’s use of trade as leverage.
- Related steps include a rule taking effect June 30, 2025 that bars Chinese medical device makers from most large EU public tenders, while a mooted Cybersecurity Act revision could label some vendors as high risk with one outlet estimating heavy five‑year costs.
- Business surveys indicate many firms are reworking supply lines, yet roughly 22% report no viable alternatives to Chinese parts, raising the risk of higher costs and delays if diversification is enforced before substitutes are in place.