EU Weighs New Sourcing Rules to Cut China Dependence, Caps at 30%–40%

On May 19, 2026, the European Union began outlining draft rules that could require strategic-industry firms to source key components from multiple non-Chinese suppliers. The proposal would limit purchases from any single supplier to 30%–40% and require at least three suppliers across different countries, with discussions set for May 29 and possible endorsement talks in late June.