The European Union is reportedly developing plans, described by the Financial Times, that would require companies in the bloc to diversify their sourcing of critical components away from overreliance on suppliers, including those from China. Under the proposed approach, firms would have to buy components from at least three different suppliers, aiming to reduce supply-chain risk and dependence on a limited number of sources.

The reporting also says the draft legislation would place caps on how much a company can purchase from a single supplier. Specifically, companies would be limited to buying roughly 30% to 40% of components from any one supplier. The broader goal is to strengthen resilience in sectors considered sensitive or strategic, by encouraging competition among suppliers and reducing vulnerability to disruptions or geopolitical pressure.

While the sources describe the measures as new legislation under consideration and do not indicate final adoption timelines, they agree on the core elements: diversification to at least three suppliers and a percentage cap on purchases from a single supplier for critical components.