EU trade chief seeks new tool to cut reliance on Chinese chips and rare earths
▼ Summary
– EU trade commissioner Maroš Šefčovič proposed a new “diversification instrument” to reduce Europe’s reliance on single suppliers for chips and rare earths.
– The proposal was made at the European Policy Center’s Brussels Economic Security Forum on Friday.
– The tool would require companies in sensitive sectors to source from at least three different suppliers.
EU trade commissioner Maroš Šefčovič has proposed a new “diversification instrument” to break Europe’s heavy reliance on single suppliers for critical components like chips and rare earths. Speaking at the European Policy Center’s Brussels Economic Security Forum on Friday, Šefčovič argued that the tool would mandate companies in sensitive sectors to source materials from at least three different suppliers. This move aims to mitigate supply chain vulnerabilities, particularly with China dominating global production of rare earths and semiconductors. The commissioner emphasized that such a measure is essential for bolstering Europe’s economic security and reducing strategic dependencies. By enforcing multi-sourcing, the EU hopes to create more resilient supply chains and safeguard against geopolitical disruptions. The proposal signals a proactive shift in trade policy, targeting sectors where concentration poses the greatest risk to industrial stability.
(Source: The Next Web)
