The United States and the European Union have agreed on a preliminary trade framework designed to cut their reliance on Chinese supply chains for critical sectors. The deal focuses on goods such as semiconductors and pharmaceuticals, areas where both sides have grown increasingly concerned about concentration risk and supply disruptions.

According to Reuters, the framework is meant to strengthen transatlantic cooperation on sourcing, production, and resilience. While the agreement is still preliminary, it signals a shared effort by Washington and Brussels to reduce vulnerability in strategic industries and to build more secure supply networks.

The move comes amid wider tensions over trade, technology, and industrial policy, as governments in the US and Europe seek to protect key sectors from geopolitical pressure. Any final agreement would still need further negotiation, but the outlines point to a coordinated response to China’s dominance in parts of the global supply chain.

China supply chains

US and EU reach trade framework to reduce dependence on China