FX.co ★ EU crafts ‘solidarity instrument’ to reduce economic reliance on China

The European Union is working on a new financial mechanism, tentatively named a "solidarity tool." According to Bloomberg, this initiative is aimed at helping European companies effectively diversify their supply chains for critical goods. The project is part of broader measures by Brussels to address the substantial trade deficit Europe faces with China, which currently exceeds €360 billion.

At this stage, the exact amount of funding planned for this initiative has not yet been officially determined. Sources indicate that the scale of support and the final parameters of the fund will depend directly on the future development of bilateral relations, including potential economic retaliatory measures that Beijing may undertake. The new tool aims to strengthen the economic security and sovereignty of EU member states amid rising global protectionism.