Brussels is considering limiting manufacturing supply chains. Instead of buying cheap, 100% Chinese components, European companies would be forced to source them from at least 3 different countries.
China is the primary global supplier of parts and components to Europe. Beijing single-handedly exports 47 percent of all the materials needed to construct a final product entering the EU.
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On May 29th, the European Commission held an internal debate on EU-China relations and manufacturing dependency, as foreign subsidies disturb the market and pose a geopolitical risk.
It also reviewed a proposal that could allow companies to buy a maximum of 30% to 40% of their parts from one single country. The remaining 60% to 70% would have to be split across at least three other nations.
The plan, targeting mostly green tech sectors, the automotive industry, and chemical and machinery manufacturers, hasn’t yet been adopted. The Commission will formally present it to EU national leaders at the European Council summit later in June.
If passed, buying more expensive international parts will raise energy bills for European households and increase the costs of solar panels and electric vehicles. The EU hopes that eliminating Chinese reliance will benefit the bloc in the long term.
Will this proposal boost European production? Or will citizens be stuck with higher costs? Our poll is anonymous and takes only a few seconds to complete. The results will be featured across EU-wide XL coverage - in videos, articles and newsletters - and will help shape our reporting as we examine how Europe can secure its position in the age of artificial intelligence.