Bond.az -- The European Union's industry chief criticized businesses on Friday for failing to adequately reduce their dependence on China, calling for faster diversification of supply chains.
European Commission member Stéphane Séjourné told reporters in Brussels that too few businesses in Europe integrate geopolitical and supply chain risks into their planning. He urged companies to modernize their business plans following a meeting of EU trade ministers.
The commission, responsible for trade matters across the EU, has been pushing member states to diversify supply lines, particularly for critical materials. The European economy faces vulnerabilities to supplies from China, which has previously used exports as leverage in political disputes.
EU economy chief Valdis Dombrovskis told Bloomberg News this week that the commission will discuss methods to reduce risky dependencies on Beijing in the coming days. He said resilience and security come at a cost, but diversification is important in the current geopolitical context to avoid exploitation of vulnerabilities and dependencies.
In December, the commission issued its first economic security doctrine, instructing firms to factor in a security premium to reduce vulnerabilities. However, officials and industry representatives report that companies are overlooking these recommendations as they focus on remaining competitive and meeting short-term profit targets.
Poland's undersecretary of state Michal Baranowski said Friday in Brussels that the war in Ukraine clearly demonstrated the risks of relying on one source, referencing Europe's previous dependence on Russian energy.
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