European companies in China are grappling with the repercussions of overcapacity in the market. This excess supply is hampering their ability to thrive and compete effectively. Businesses find themselves struggling to maintain profitability amidst intense competition. The surplus production has led to price wars, diminishing profit margins. Companies are forced to innovate and streamline operations to stay afloat. Some are exploring new markets to reduce dependence on China. The impact of overcapacity is felt across various sectors, creating immense challenges for European firms. Adapting to these changing market dynamics is crucial for their survival and long-term success.