EU plans to force companies to buy critical components outside China

The rule, which has been advanced by the Financial Times, would force them to diversify suppliers
The European Union plans to force companies in the bloc to buy critical components from at least three different suppliers, in a bid to reduce its dependence on China, the Financial Times reported on Monday.

The new rules would affect companies in key sectors such as chemicals and industrial machinery, the British newspaper added, citing two EU officials familiar with the matter.
Under the new legislation, companies would be obliged to buy between 30% and 40% of components from a single supplier and would have to source the rest from at least three different suppliers, different from the same country, the FT said.

This comes as China continues to use its control over the processing of many minerals as a tool of pressure, at times restricting exports, depressing prices and undermining the ability of other countries to diversify their sources of materials used in the manufacture of semiconductors, electric vehicles and advanced weaponry.

Continue reading in ABC