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 supplier base, potentially through the use of tariffs or by incentivising via access to public contracts and subsidies.