EU weighs 3-source rule to curb China supply dependence

The European Commission is considering legislation that would push companies in sensitive sectors to rely on at least three suppliers instead of a single dominant source, a move aimed in part at reducing dependence on China. Trade Commissioner Maros Sefcovic said the plan could be included in a broader review of EU trade defenses due by the third quarter. The package may also speed up anti-dumping and anti-subsidy cases and add tools to tackle overcapacity. Sefcovic pointed to risks in critical supplies, including Chinese export restrictions on some rare earths, but did not name the sectors that could be covered. He said any new rules would be developed with industry and include a transition period.