EU Seeks to Cut Dependence on China with New Legislation

The European Commission is drafting a new law designed to compel companies in the EU to diversify their sources of key raw materials and supplies. Commission President Ursula von der Leyen said companies were moving too slowly to reduce the risks associated with dependence on China.

At a summit in Brussels, leaders of the member states agreed that the Commission should negotiate with major trading partners on global macroeconomic imbalances and examine the need for new trade measures. Although the summit's conclusions do not explicitly mention China, the discussion focused on that country.

Last year's restrictions on rare earth exports imposed by Beijing also served as a catalyst. Von der Leyen acknowledged that if companies accelerated the diversification of their supply chains on their own, the proposed legislation might ultimately prove unnecessary.

(Reuters, bak)