Brussels wants industry to ditch Chinese suppliers. Businesses are pushing back

AI Summary

The European Union is preparing measures to reduce industry’s dependence on Chinese suppliers, including a possible requirement for businesses in key sectors to diversify supply chains. European companies are pushing back against the proposals, which are intended to strengthen the bloc’s resilience and leverage in potential trade disputes.

European industry has bristled at EU plans to force businesses to diversify their supply chains away from China, as the bloc gears up for a new package of de-risking measures later this year. In December, the European Commission will present a trio of new instruments, none of which will name China, but the overall aim is to wind down dependencies on Beijing and allow the EU to punch back in a trade war scenario. One tool – DiversifyEU – could compel businesses in key sectors to expand their...