European companies are spending less and investing less in China, according to a new report from the European Union Chamber of Commerce in China. This is because the Chinese economy is slowing down, and there is strong competition, which is causing prices to fall. The weaker Chinese economy, made worse by problems in the housing market and more resistance from Europe and the US to Chinese exports, is negatively affecting these businesses. The report suggests that government support has led to too much investment in areas like electric cars, meaning there are more products than people want to buy. This extra supply has started intense price wars, making companies look for customers in other countries. In Europe, people are worried that more imports from China could harm local businesses and jobs. The EU has responded by adding taxes to Chinese electric vehicles, saying they receive unfair government help. The report also shows that businesses are feeling less confident and making less money.