China Rail Giant Punishes Unit for Global Misconduct

Maglev trains are assembled in the production department of CRRC Zhuzhou Locomotive Co. Ltd. in Changsha, Hunan province, on Dec.3. Photo: Visual China

(Beijing) — China’s top train maker has punished a subsidiary for creating disorder in the international marketplace through practices such as bidding for projects at money-losing prices and breaking promises.

In a recent internal memo, CRRC Co. Ltd. said the offending unit, CRRC Zhuzhou Locomotive Co. Ltd., engaged in bidding behavior that led to losses and damaged the group’s reputation. It pointed to five past cases since 2015 involving inappropriate behavior by the affiliate.