The European Union Chamber of Commerce in China's annual survey revealed that, confronted with economic deceleration and hyper-competitive pressures within China, European enterprises are implementing cost-reduction measures and curtailing investment, precipitated by a deflationary price environment.

The deceleration of the Chinese economy, exacerbated by a burgeoning real estate crisis, has been further compounded by the headwinds of transatlantic protectionism targeting the surge in Chinese exports, precipitating deleterious consequences for businesses across multiple sectors.

Empirical evidence gleaned from comprehensive surveys indicates that governmental subsidies, while ostensibly intended to stimulate growth, have inadvertently engendered a surfeit of investment in sectors such as electric vehicles, resulting in a supply-side glut that far outstrips extant demand; this oversupply has precipitated internecine price wars and compelled enterprises to aggressively pursue exogenous markets as a palliative measure.

Across Europe, anxieties are mounting that the escalating influx of Chinese imports poses an existential threat to regional industries and employment prospects, prompting the EU to impose tariffs on Chinese electric vehicles, citing inequitable subsidisation, whilst concurrent surveys evince a persistent erosion of both business confidence and profitability.