Headline: Cheap Chinese goods, expensive European reality — Feb. 27, 2026. European markets are confronting a growing disconnect between low-cost Chinese exports and higher-cost production at home. What began as a largely domestic Chinese phenomenon — described as “involution,” meaning intense hypercompetition in an oversaturated market — is increasingly having negative spillovers for Europe. The commentary notes that the Chinese oversupply and price pressure, once contained primarily within China, now weigh on European manufacturers and import prices. Context: the term "involution" refers to fierce internal competition that suppresses margins and can drive exporters to seek markets abroad. The piece highlights a shift from a China-centric problem to a wider European economic challenge, underscoring tensions between low-cost imports and Europe's higher-cost economic structure. #China #Europe #trade #manufacturing #FiatNews