European companies are cutting expenses and investing less in China. This is due to a slower economy and strong competition, which is causing prices to fall, according to a yearly survey by the European Union Chamber of Commerce in China. The Chinese economy's slowdown, made worse by a real estate crisis and growing resistance from Europe and the US to more Chinese exports, has negatively impacted these businesses. The survey indicates that government support has led to too much investment in sectors like electric vehicles, resulting in more supply than demand. This oversupply has caused fierce price competition and pushed companies to seek markets abroad. In Europe, there are concerns that increased imports from China could threaten local industries and jobs. The EU has responded by placing tariffs on Chinese electric vehicles, stating that unfair subsidies are the reason. The survey also shows a continued decrease in business confidence and profitability.