European Companies in China Feel the Squeeze as Economic Growth Slows Down

European companies operating in China face increasing pressure as China's economic growth slows down and overcapacity issues rise. Profits margins for European firms in China are at an 8-year low, with only 30% reporting higher profits than their global average. The slowing real estate sector and geopolitical tensions have contributed to China's economic downturn. Overcapacity is a major issue, especially in industries like construction, automotive, and engineering. It has led to price drops. Getting paid on time by Chinese clients is also a growing challenge as it became more difficult to enforce contracts versus the prior year.