European Firms Rethink China Ventures Amid Economic Shifts

European companies are cutting back on expenses and investment plans within China as they navigate a slowing economy and fierce local competition driving down prices, reveals the European Union Chamber of Commerce in China's annual survey.

The significant hurdles facing these firms highlight the broader issues confronting China's economy, which is grappling with a prolonged real estate crisis that has dampened consumer spending. Additionally, Europe and the U.S. are increasingly challenging China's export growth.

Despite efforts to stimulate consumer spending, concerns over overcapacity leading to market instability remain. A striking example is China's electric vehicle market, where intense governmental subsidies have created a mismatch between supply and demand, resulting in destabilizing price wars and growing export concerns in Europe.

(With inputs from agencies.)