EU looks at legally forcing industries to reduce purchases from China

The EU is considering legally mandating that industries reduce their reliance on Chinese suppliers to mitigate future economic disruptions. This consideration comes as the European Commission unveiled the ReSourceEU program, a €3 billion strategy aimed at diversifying the bloc's supply chains for critical raw materials. The program includes initiatives like preventing scrap aluminum exports, recycling car battery magnets, and a €2 billion fund to support industries moving away from Chinese supplies. EU officials stated that the strategy aims to counter China's "weaponization" of essential materials for geopolitical leverage, citing past disruptions like China's chip export ban. While the EU prefers voluntary diversification, it reserves the right to introduce legislation forcing companies to diversify their supply sources if necessary.

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