The EU is exploring a new regulatory instrument to compel companies to diversify suppliers and reduce dependence on China. This strategy is modeled after the EU's efforts to decrease reliance on Russian energy.

The EU’s trade chief has confirmed publicly for the first time that the bloc is considering a specific rule to compel companies to diversify their suppliers, as Europe looks to unwind its dependencies on China. “Diversification now requires a dedicated instrument,” Trade and Economic Security Commissioner Maros Sefcovic said on Friday, adding that he would model it on the manner in which the EU reduced its reliance on Russian energy following its invasion of Ukraine in 2022. “Recent industrial.....