European companies are spending less and investing less in China. This is because China's economy is slowing down, and there's strong competition, which is causing prices to drop. Problems in the housing market and growing opposition from Europe and the US to Chinese exports are making the situation worse. The report also says 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 caused strong price competition, making companies look for customers in other countries. In Europe, people are worried that more imports from China could harm local businesses and jobs. Because of this, the EU has put extra taxes on Chinese electric cars, saying that China gives unfair financial help. The report shows that businesses continue to feel less confident and are making less profit.