The European Commission is considering new legislation that could require companies operating in sensitive sectors to reduce their dependence on single suppliers and instead source critical materials from at least three providers.
Speaking in Brussels, European Trade Commissioner Marcos Sefcovic said the proposal forms part of a wider review of the EU’s trade defence framework, expected later this year.
The plans are aimed at strengthening supply chain resilience and reducing exposure to disruptions linked to concentrated sourcing, particularly in strategic sectors reliant on imports from China.
Related Story
Šefčovič said diversification now requires a dedicated policy instrument, and that businesses in high-risk industries should be encouraged to move away from depending on a single supplier.
He pointed to concerns around critical minerals and export restrictions on rare earth materials as examples of growing economic security risks.
The latest proposals come amid a turbulent year for the supply chain sector, following the closure of the Strait of Hormuz earlier this year.
The retail industry is among the most impacted sector, with the soar price of oil impacting the cost of food, agricultural fertiliser and freight carriers.
Click here to sign up to Retail Gazette‘s free daily email newsletter
