A recent annual survey by the China Chamber of Commerce in the EU reveals that European enterprises are implementing stringent cost-cutting measures and curtailing investment in China, precipitated by the confluence of a decelerating Chinese economy and relentless competitive pressures driving down prices. Exacerbated by a deepening real estate crisis and persistent headwinds from Europe and the US against surging Chinese exports, the economic deceleration in China is demonstrably impacting these firms' bottom lines. The survey elucidates that governmental subsidies have engendered over-capitalisation in sectors such as electric vehicles, resulting in a surfeit of supply that has ignited cutthroat price wars and impelled enterprises to aggressively pursue overseas markets. In Europe, anxieties are mounting regarding the potential for escalating Chinese imports to jeopardise indigenous industries and diminish employment opportunities. In response, the EU has adopted countermeasures, imposing punitive tariffs on Chinese electric vehicles, citing alleged unfair government subsidisation. The survey further corroborates a sustained erosion of both corporate confidence and profitability amongst European businesses operating within the Chinese market.