EU to Present Supply Chain Rules Capping Single Supplier at 40% on May 29

The EU is advancing plans to mandate supply-chain diversification for critical components, requiring firms to use at least three suppliers and limiting any single source to 30-40% of purchases. The latest updates specify target sectors including chemicals and industrial machinery, with punitive tariffs on Chinese imports under consideration as a response to export curbs. The proposal will be formally presented at the European Commission meeting on 29 May and could receive endorsement from EU leaders the following month. This builds on the initial 18 May report that first outlined the three-supplier requirement to reduce reliance on China.