The EU plans to require companies to buy parts from non-Chinese suppliers

The convergence of geopolitical and trade factors is rapidly reshaping European supply chains. Spain, Italy, the Netherlands, France and Lithuania are calling for tougher trade measures to curb China, while the European Commission is stepping up its supplier diversification strategy.

According to press reports, at the European Commission meeting of May 29, 2026, a proposal was examined that would allow companies to buy a maximum of 30% to 40% of their components from a single country. The remaining 60% to 70% would have to be spread among at least three other countries. The plan, aimed mainly at the green technology sector, the automotive industry, and chemical and machinery manufacturers, has not yet been approved. The Commission will formally present it to EU national leaders at the European Council summit to be held at the end of June. Mercosur may come to have a unique opportunity to position itself as a key supplier to the EU, replacing Chinese industrial products and critical minerals.