The European Union is considering a tougher stance on Chinese imports that undermine local industries. Potential measures include diversifying supply chains away from China.

The European Union’s executive arm is set to back a tougher line against Chinese imports at a key meeting on Friday as a flood of low-cost competition undermines local industries. Potential measures include requiring companies in key sectors to have at least three suppliers from two or more countries in a bid to pare reliance on China, the South China Morning Post reported. Industry commissioner Stephane Sejourne will back broader use of regulations designed to prevent foreign companies...