EU moves to cut China reliance with new trade tool

The European Union is preparing a new tool to reduce its economic dependence on China. The plan focuses on diversifying supply chains for critical materials and technologies. The tool aims to speed up "de-risking" — the process of lowering the risks of relying too heavily on one country for key goods. EU officials say the goal is not to cut ties with China, but to spread sourcing across more partners. The move follows growing concerns in Europe about supply disruptions. Recent shortages of medicines, chips, and rare earth minerals have exposed how vulnerable the bloc is to single-source suppliers. Details of the tool are still under discussion. Officials expect it to combine incentives for companies to shift production and stricter screening of foreign investment in sensitive sectors. China remains one of the EU's largest trading partners. Brussels says it wants a stable relationship, but on terms that protect European industry and security.