appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Xiaofei Xu

Finbarr Bermingham

Chinese railway giant CRRC has been forced out of a Lisbon metro contract in favour of a Polish firm, after a European Commission investigation found that foreign subsidies allowed CRRC to underbid rivals.
“The in-depth investigation confirmed these preliminary findings, revealing that the subsidies in question had indeed given the consortium an unfair competitive edge, to the detriment of other bidders taking part in the tender and the integrity of the EU’s internal market,” the European Commission said in a statement on Tuesday.
The Mota-Engil-led consortium, which submitted the lowest bid of €598.8 million for the construction and maintenance of the Portuguese capital’s new Violet Line, proposed replacing CRRC with Polish rolling stock manufacturer PESA – a commitment the European Commission accepted as sufficient to remove the distortion.
The China Chamber of Commerce to the EU (CCCEU) expressed its strong opposition and deep concern at the decision, arguing that the EU failed to adequately explain why a subcontractor holding less than 10 per cent of the contract value was deemed critical enough to warrant corrective action, the group said in a statement.
The CRRC took part in the consortium as a subcontractor to provide metro cars for the project – a role estimated to be worth around €50 million, or just a fraction of the total bid, according to the CCCEU.
CRRC Portugal did not reply immediately to a request for comment.
The tender process was launched by the Lisbon Metro in April 2025, and Brussels launched its in-depth investigation under the foreign subsidies regulation (FSR) into CRRC Portugal’s participation in November.
After CRRC Portugal withdrew from the bidding and said that it was “not in a position to obtain or share” information on other companies in the CRRC group, the European Commission decided to continue its probe, according to an EU official, who spoke on condition of anonymity.
Brussels was concerned that the firm would re-enter the bidding “through the back door”, as Mota-Engil kept the prices and technical arrangements that matched those offered by CRRC in its bid, the source said.


CRRC companies had withdrawn from previous tenders in Europe after FSR probes were opened, with Chinese businesses complaining that they could not legally share information without breaking domestic laws on data transfers and sharing state secrets.
It marks a break from tradition, where the European Commission dropped the FSR probe after Chinese companies withdrew from bidding.
The commission found that CRRC received government support and subsidies “in the order of billions”. While officials were not able to access all of the company’s books, they made the judgment based on “facts available” – a legal provision allowing regulators to source information by other means when a party does not cooperate or provides insufficient information.
EU officials said they identified grants made to the CRRC group, tax benefits – including some cuts from 25 per cent to 15 per cent for some CRRC subsidiaries – pre-tax deductions, preferential loans and bonds, and the award of “non-transparent public procurement tenders”.
Brussels also identified a “de facto” state guarantee that cut costs and allowed the company to subsidise innovation capacity, according to the EU official involved
The CCCEU said firms were, on multiple occasions, given “extremely short deadlines of only two to three days” to submit complex materials, with insufficient consideration given to the time needed for cross-border evidence gathering, which the CCCEU said undermined the effective exercise of companies’ due process rights.
The chamber further criticised the foreign subsidies regulation as an “arbitrary” and “discriminatory” tool being weaponised to exclude Chinese firms from European markets.
The decision is the latest flashpoint between Beijing and Brussels over the FSR. China’s Ministry of Commerce expressed strong opposition in December to the EU’s FSR investigations into Chinese companies – naming the CRRC and Nuctech as examples – calling the actions “egregious, with clear targeting and discriminatory intent” and vowed to use necessary means to defend their rights.
Last week, airport-scanner-manufacturer Nuctech began litigation proceedings against the European Commission over its use of the FSR against the firm in 2024.
In a previous case that was rejected by the EU’s General Court in Luxembourg, Nuctech had claimed it was unable to comply with the commission’s request to hand over reams of information because the firm would contravene laws governing data flows and state secrets in China.


China and EU deadlocked on medical devices, still talking on PHEV curbs: source

Chinese marques in driving seat as high petrol prices accelerate EU shift to electric cars

China’s industrial strengths must also benefit its trading partners

Hong Kong rejects EU report’s claims on freedoms as ‘unfounded and biased’

China-EU relations

China’s CRRC drops bid for Lisbon metro deal as EU finds ‘billions’ in subsidies probe

Workers operate on a production line at an assembly workshop of CRRC Zhuzhou Locomotive in China’s Hunan province. Photo: Xinhua

China confronts Middle East supply shock, as State Council mulls energy strategy

Premier Li Qiang presides over a State Council group study session on energy development on Monday. Photo Xinhua

China’s vast nuclear power sector now able to build 50 reactors at a time

A view of the Taipingling nuclear power project in China’s Guangdong Province. Photo: Xinhua

Maker of China’s C919 jet weighs supply chain weaknesses amid delivery delays

A ground crew member directs a C919 jetliner operated by China Eastern Airlines at Harbin Taiping International Airport in Harbin, northeast China’s Heilongjiang province, on April 15. Photo: Xinhua

Jump in EU EV sales amid Iran war boosts Chinese brands’ fortunes

Sales of battery electric vehicles in the EU climbed 51 per cent month on month in March. Photo: EPA

BYD cars are ready for export in Suzhou, in China’s eastern Jiangsu province. Photo: AFP

China begins building US$1 billion hydropower station in Cambodia amid energy crisis

The groundbreaking ceremony for the Upper Tatay pumped storage hydropower project in Koh Kong province, Cambodia, on April 10. Photo: Xinhua.

The site of the Upper Tatay pumped storage hydropower project in Koh Kong province, Cambodia, on April 10. Photo: Xinhua

Economy

Global Economy

China Economy

News

China

Diplomacy

Polish firm to replace state-backed Chinese giant as Brussels uses regulatory powers to curb what it says is market-distorting foreign aid


Polish firm to replace state-backed Chinese giant as Brussels uses regulatory powers to curb what it says is market-distorting foreign aid.


China’s CRRC drops bid for Lisbon metro deal as EU finds ‘billions’ in subsidies probe

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Polish firm to replace state-backed Chinese giant as Brussels uses regulatory powers to curb what it says is market-distorting foreign aid

Polish firm to replace state-backed Chinese giant as Brussels uses regulatory powers to curb what it says is market-distorting foreign aid