As the European economy slows, companies’ investments grow in China.
New Delhi: As the European market slows down due to fierce competition, which is driving the prices down, reports an annual survey released on Wednesday. The Chinese economy is also facing challenges due to the real estate crisis in the country that has affected consumer spending. Beijing is also facing growing pushback from Europe and the United States over the surging exports.
This picture has deteriorated across many key metrics, stated the Chamber of Commerce in China in its Business Confidence Survey 2025. These were the same forces driving up Chinese exports that were depressing business in the Chinese market. While companies have invested a lot in the targeted sectors, which has outpaced demand. The overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas markets.
In Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidised electric vehicle production. The president, Jens Eskelund , highlighted the importance of bilateral trade and equal distribution of demand and supply between trade and investment.
The survey also showed the decline of profits, which has increased over the past year, and the fall in business confidence to the bottom. Jens Eskelund responded to this situation being very difficult for everyone right now in an environment of declining margins, he stated.
(Subham Singh)
