CRRC is currently facing an investigation by the European Commission, as it was subjected to a probe aimed at uncovering whether any subsidies of state support from China had affected fairness in competition as far as Lisbon’s new light rail system was concerned.

This is reported by the railway transport news portal Railway Supply.

EU Investigation Targets CRRC in Lisbon Light Rail Tender
Source, photo: www.railwaypro.com

CRRC Faces EU Scrutiny Over Foreign Subsidies

The probe launched after a grouping of companies, including Mota-Engil and CRRC Tangshan Rolling Stock Unipessoal, filed a notification regarding this case through the Foreign Subsidies Regulation because of a possible financial benefit observed by authorities from the European Union, and as such, they launched an investigation into this matter.

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The Commission made it clear that Europe is still open to international investment, and all firms have equal opportunities, though. Thus, researchers will check whether this state support has affected CRRC’s chances of beating European competitors at a low price, thereby distorting equal bidding opportunities.

CRRC Investigation Highlights EU’s Competitive Safeguards

Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, commented, “While Europe is open and eager to have international partnerships, it is essential that this cooperation is transparent and that everyone plays by the same rules.”

If any irregularities are proven, then measures can be adopted by the Commission, and there can be blocking of the Lisbon contract, or clearance, if no irregularities are proven. As one of the biggest transportation projects of Lisbon, any postponement may have effects on bids, though it won’t interrupt any kind of constructions.

It is intended that this light rail system will extend Lisbon’s metro system and enhance mobility within the Portuguese capital city. Launched in April of this year (2025), this project involves design, implementation, and maintenance of this project through one contract only.

This case example shows that the EU is addressing market fairness and preventing outside interference in public tenders through its provision of regulations, namely the Foreign Subsidies Regulation, in effect as of 2023.

Source, photo: www.railwaypro.com

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Why is CRRC under investigation by the European Commission?

The Commission suspects CRRC received foreign subsidies that may have distorted competition during Lisbon’s light rail tender under the Foreign Subsidies Regulation.

Will the Lisbon violet line project be delayed?

The review could postpone final contract awards, but construction is expected to continue as the Commission completes its assessment.

How does the EU’s Foreign Subsidies Regulation protect competition?

It allows the Commission to investigate non-EU financial support that creates unfair market advantages and ensures all bidders compete on equal terms.

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