EU Industry Commissioner Stéphane Séjourné on Friday called on EU businesses to diversify their suppliers as trade tensions with China escalate.
The comments come at a time when Beijing’ has repeatedly made threats against AB’ in recent weeks, and Brussels is trying to strengthen ’'s legislation against its Asian rival.
Last year, China restricted the export of rare earth and chips, which are strategic for AB’'s green technologies, defense and automotive industries.
Séjourné, ABAfter meeting with ’'s 27 trade ministers in Brussels’, he told EU businesses that “ %Don't make your 100’ in one country, ” said. He added: The global geopolitical situation shows that your ability to provide yourself abroad must also depend on other types of countries, as well as on European production.“
The European Commission has so far issued guidance for EU companies, and Séjourné has signalled that if they do not take action, the EU administration will probably have to take the next step, “.
Measures force automakers to diversify
According to Euronews’, the Commission is internally working on a proposal that would force automakers to source chips from multiple suppliers. has been clarified.
Last year, a dispute between the Dutch government and Dutch-based Chinese chip company Nexperia caused chip shortages in EU industries after Beijing ’ blocked exports in retaliation.
EU Trade Chief Maroš Šefčovič is said toEuronews At the time, ’ wrote that “ was arming critical materials for the EU industry.
There have been disputes between Brussels and Beijing since AB’ submitted several proposals restricting ’'s access to the EU single market.
The so-called “ Industrial Accelerator Act aims to support EU companies in public procurement and impose strict conditions on Chinese ”'s investments in the bloc. The Cyber Security Act, meanwhile, could exclude Chinese telecommunications companies from the EU market.
Direct from Beijing was threatenedThe EU will face retaliation if it moves forward with these proposals. China has repeated its threats following media reports about potential EU measures against cheap Chinese imports flocking to the EU market.
As AB’'s trade deficit with China is becoming more critical each month, there will be a referral discussion among EU commissioners at ’ in Brussels on May 29th to decide on AB’'s strategy.
