European Policy Center

EU Trade Commissioner Maroš Šefčovič advocates for a new diversification instrument to reduce European industry's reliance on single suppliers in critical sectors like microchips and rare earths. He references the Energy Union model and emphasizes securing three different suppliers for critical materials, citing China's export restrictions and the EU's over 90% dependency on China for rare earths as key challenges.

EU trade chief Maroš Šefčovič advocates for a new 'diversification instrument' to reduce reliance on China in critical sectors like chips and rare earths. He references the Energy Union model and highlights vulnerabilities exposed by China's export controls, with EU leaders planning to address China's industrial overcapacity at a June summit.