The annual survey conducted by the European Chamber of Commerce in China reveals that European enterprises are implementing cost-cutting measures and scaling back investments in response to the deceleration of the Chinese economy and the resultant price depression engendered by hyper-competition, a situation exacerbated by the real estate crisis and mounting resistance in Western nations to surging Chinese exports, thus profoundly impacting these businesses; the investigation implicates governmental subsidy policies in fostering overinvestment, particularly in sectors like electric vehicles, leading to a surfeit of supply that outstrips demand, consequently triggering fierce price wars and compelling enterprises to seek refuge in overseas markets, while concurrently, in Europe, anxieties burgeon regarding the potential threat posed by escalating Chinese imports to local industries and employment, prompting countermeasures from the EU, such as the imposition of tariffs on Chinese-manufactured electric vehicles predicated on allegations of inequitable subsidization, and furthermore, the study elucidates a continuing erosion of corporate confidence and profitability, underscoring the precariousness of the current economic landscape.