Reuters, BRUSSELS
The European Commission would propose a new law requiring EU companies to diversify their sources of key supplies, although it might prove surplus to requirements if they proactively de-risk from China, European Commission President Ursula von der Leyen said. EU leaders meeting in Brussels agreed on Friday that the EU executive should enter dialogue with the bloc’s main trading partners on “global macroeconomic imbalances” as well as reviewing whether new trade measures are needed.The focus was on China, although the world’s second-largest economy was not named in the conclusions of their summit. Von der Leyen said the European Commission would propose a measure to promote diversification because businesses had derisked at too slow a pace. The issue came to a head last year when China exploited its dominance in processing of critical minerals by placing export restrictions on rare earths.
European Commission President Ursula von der Leyen speaks to the media following a EU summit in Brussels, Belgium, on Friday.
The best-case scenario was that companies stepped up their efforts to derisk, suggesting the measure might then be redundant, von der Leyen said.“There is a need for improvement. We’ve seen the figures, they speak for themselves, and we have to rebalance our relationship,” she added.
