EU Trade Commissioner Maroš Šefčovič promised on Friday a new tool designed to help European enterprises diversify suppliers and prevent the shortage of critical materials from China’.
Šefčovič at the Brussels Economic Security Forum’, organised by the European Policy Centre and in partnership with Euronews’, said “Diversification now requires a special tool. “Recent industrial cases, particularly the supply of chips and rare earths, have strengthened my belief that a step change is necessary.”
His announcement followed disruptions in European strategic industries last year when China’ blocked exports of green technologies and rare-earth elements needed for the defense sector, as well as chips used by the automotive industry.
But such a move could exacerbate tensions with Beijing, which threatens retaliation if AB’ closes its market to Chinese companies.
“Industry must do its part”
Šefčovič later told Euronews’e that the approach would require companies to source from three different suppliers, but that “ still had to decide what to actually do with the ” legal proposal.
The proposal will ensure that companies do not fully trust a single supplier, such as China. However, businesses in AB’ may be reluctant to support such a measure if it increases production costs.
The commissioner said economic security is a common “ responsibility, and European ” companies should address geopolitical risks as part of their core business.
“Industry is on the front line. We have to look out for them, but the industry has to do its part. - ”
In 2025, Dutch authorities took over chip maker Nexperia’ due to concerns that Chinese owner Wingtech Technology’ could move important operations and intellectual property rights to China’e. Beijing responded by temporarily blocking the export of Nexperia’'s products and the chips required for the European automotive industry.
The threat facing Europe’ is not solely due to the supply of chips. This is also the block ’i is also due to its dependence on the rare lands of China, refined and processed by the Asian giant.
During trade tensions with the U.S. last year, China also halted rare-earth exports. The shipments resumed after several weeks of negotiations, but the truce was agreed to only for one year until October 2026, when the Sword of Damocles ’ hung over the European ’.
Relations between China and the EU are increasingly tense as Brussels prepares new tools to protect itself from China’'s increased capacity surplus. The bloc faces a record trade deficit of 359.9 billion Euro’, and despite continuous dialogue efforts, Beijing continues to struggle to achieve equal terms with ’.
At the same time, European enterprises complained about China’'s unfair trade practices, while several member states, including France, Italy, Spain, the Netherlands and Lithuania’, urged the Commission to take a tougher stance through new trade defense tools.
But two proposed EU legislations (the so-called Industrial Accelerator Act and the Cyber Security Act), aimed at tightening Chinese companies' access to the EU market, have already received threats of retaliation from Beijing’, raising the possibility of a trade war if AB’ advances further.
