💨 Abstract

European companies are reducing costs and scaling back investments in China due to its slowing economy and intense competition, which has decreased prices. The challenges faced by these companies reflect broader issues in China, including a prolonged real estate crisis and growing pushback from the EU and US over surging exports. The EU Chamber of Commerce's Business Confidence Survey 2025 highlights a deteriorated business outlook, with overcapacity in industries like electric vehicles leading to price wars and profit declines.

Courtesy: WTOP Staff