A yearly report from the European Union Chamber of Commerce in China states that European companies are spending less and investing less in China. This is because the Chinese economy is slowing down, and there is strong competition, which is causing prices to drop. China's slowing economy has been made worse by issues in the property market and more opposition from Europe and the US to Chinese exports, which has negatively affected these businesses. The report suggests that government support has led to too much investment in areas like electric cars, meaning there is more supply than demand. This extra supply has caused strong price competition, making companies look for markets outside China. In Europe, people are worried that more products from China could harm local businesses and jobs. The EU has reacted by adding extra taxes on Chinese electric vehicles, saying they receive unfair government help. The report shows that businesses are still less confident and making less profit.