European companies should avoid sourcing all their supplies from a single country, EU Industry Commissioner Stéphane Séjourné warned on Friday, as trade frictions with China intensify. Speaking after a meeting of the bloc’s 27 trade ministers in Brussels, Séjourné urged businesses to spread their procurement across multiple nations and boost domestic production.
“Do not make 100% of your supplies in one country,” Séjourné told EU business representatives. “The global geopolitical situation shows that your ability to provide yourself abroad must also depend on other types of countries and also on European production.”
China’s Strategic Leverage
The commissioner’s remarks follow a series of Chinese threats against the EU in recent weeks, as Brussels moves to tighten controls over its single market. Last year, Beijing restricted exports of rare earths and semiconductors—materials critical for Europe’s green technologies, defence, and automotive sectors. The move exposed vulnerabilities in supply chains that rely heavily on Chinese production.
Brussels and Beijing have been locked in a deepening dispute since the European Commission proposed several measures to limit China’s access to the EU market. These include the so-called “Industrial Accelerator Act,” which would favour European companies in public procurement and impose strict conditions on Chinese investments. A separate Cybersecurity Act could exclude Chinese telecoms firms from the EU market altogether.
China has directly threatened retaliation if these proposals advance. It repeated those warnings after media reports emerged about potential EU measures against cheap Chinese imports flooding the European market.
EU Trade Chief Maroš Šefčovič previously told Euronews that China was “weaponising” critical supplies for EU industry. Last year, a dispute between the Dutch government and Nexperia—a Chinese-owned chipmaker based in Nijmegen—led to shortages after Beijing blocked exports in retaliation.
The European Commission has so far issued guidance to companies on supply chain diversification. Séjourné signalled that if businesses do not act voluntarily, the EU executive would “perhaps have to move to the next step.”
Internally, the Commission is already drafting a proposal to force car producers to source chips from multiple suppliers, according to Euronews. The automotive industry, a cornerstone of Europe’s economy, has been particularly vulnerable to semiconductor shortages.
The push for tech sovereignty aligns with broader EU efforts to reduce strategic dependencies without resorting to isolation. Séjourné’s warning underscores a growing consensus in Brussels that reliance on a single supplier—especially one with geopolitical leverage—poses unacceptable risks.
As the EU navigates these tensions, the message to businesses is clear: diversify or face regulatory compulsion. The coming months will test whether voluntary measures suffice or whether the Commission must impose binding rules to safeguard Europe’s industrial resilience.
