The European Commission has launched a formal investigation into potential market distortion involving the Portuguese subsidiary of China’s state-owned CRRC during a bid for major railway construction works in Lisbon.
The probe follows a preliminary inquiry that suggested the company may have benefited from foreign subsidies when participating in an April tender for the construction of Lisbon’s new “violet” line, a surface railway that will connect to the city’s underground metro network.
According to Metropolitano de Lisboa, the project issuer, four offers were submitted for the tender, ranging from €599 million to €716 million ($698.55 million). Although no Chinese company was publicly listed among the bidders, the Commission noted possible links involving CRRC Tangshan Rolling Stock (Portugal). The company has not yet responded to requests for comment.
EU Applies Foreign Subsidies Regulation
The investigation is being carried out under the EU’s Foreign Subsidies Regulation, which aims to prevent unfair advantage for companies receiving non-EU financial support in public procurement processes.
The Commission will now conduct an in-depth inquiry, after which it may:
- Accept remedies from CRRC,
- Block the company from winning the tender, or
- Allow the bid to proceed if no distortion is found.
Official Statement
European Commissioner for Industry, Stephane Sejourne, emphasized the importance of protecting the EU market, stating:
“Protecting our single market from distortions is essential to ensure fair competition, support companies that compete on merit, and safeguard the Union’s economic security.”
The final decision from the Commission is expected after further examination of CRRC’s financial structure and its potential use of foreign state support.
