BRUSSELS: The European Union (EU) is developing a “solidarity instrument” to support companies that diversify critical supplies away from China and cushion the impact of any retaliation by Beijing in the event of a trade conflict.
The tool will come at a price, though, and would require funding, just as member states haggle over the bloc’s next multiyear budget, according to people familiar with the matter.
It’s unclear how much money would need to be committed as it would depend, among other things, on the scale of any Chinese response – but it could be significant, given the size of the industries and trade involved.
The EU’s deliberations come as several member states push to cut spending.
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