The EU is outlining plans to force European companies to cut back on their purchases from China, the Financial Times reports, citing sources.
The proposals would affect several sectors, such as companies operating in chemicals and industrial machinery.
The new rules would impose a cap, expected to be 30-40 percent, on how much can be purchased from a single supplier. The rest of the components must come from at least three different suppliers, not all of whom can be based in the same country.
The plans are said to be a response to Beijing's export restrictions on critical technology. The EU wants to reduce its dependence on China, the newspaper writes.
Some European car factories were forced to pause production last year after Beijing's export controls on rare earth metals and other components.
