EU Targets CRRC Over Alleged Subsidies in Lisbon Rail Bid
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The European Commission has opened an in-depth investigation into a subsidiary of China Railway Rolling Stock Corp. Ltd. (CRRC), examining whether it unfairly benefited from state subsidies while bidding on a light rail project in Portugal. The probe marks the second time the EU has used its new regulatory tool to scrutinize the Chinese trainmaker.
Announced Tuesday, the investigation centers on Portugal CRRC Tangshan Rolling Stock Unipessoal Lda.’s role in a consortium vying for a contract to build Lisbon’s “Violet Line,” an 11.5-kilometer light rail line expected to include 17 stations. The EU’s executive arm said there are “sufficient indications” the company may have received financial support from Beijing that could distort competition in the bloc’s internal market.
The European Commission is using powers granted under the Foreign Subsidies Regulation (FSR), which took effect in January 2023, to assess whether state backing gave CRRC an unfair advantage in the tender process. Outcomes could range from a no-objection decision to blocking the contract or imposing corrective measures.
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- The EU is investigating CRRC's Portuguese subsidiary for alleged unfair state subsidies in a €599 million Lisbon light rail project bid.
- The probe, under the Foreign Subsidies Regulation, could lead to the contract being blocked or corrective measures.
- This is the second FSR investigation into CRRC; Chinese groups criticize the EU rules as discriminatory and burdensome.
- CRRC Zhuzhou Institute Co., Ltd.
- The provided article does not contain information about "中车株洲电力机车研究所有限公司" or "CRRC Zhuzhou Institute Co., Ltd.".
- CRRC Tangshan Co., Ltd.
- CRRC Tangshan Co., Ltd. (referred to as Portugal CRRC Tangshan Rolling Stock Unipessoal Lda. in the article) is a subsidiary of China Railway Rolling Stock Corp. Ltd. (CRRC). The European Commission is investigating whether it received unfair state subsidies while bidding on a light rail project in Lisbon, Portugal. Their consortium submitted the lowest bid for the project.
- China Communications Construction Co., Ltd.
- China Communications Construction Co., Ltd. (CCCC) increased its stake in Mota Engil, a Portuguese construction group, to 32.4% in 2021. Mota Engil leads a consortium that submitted the lowest bid for a light rail project in Lisbon, which is currently under investigation by the European Commission.
- 2021：
- China Communications Construction Co. Ltd. increased its stake in Mota Engil to 32.4%.
- January 2023：
- The Foreign Subsidies Regulation (FSR) took effect, granting the European Commission new investigative powers.
- March 2024：
- A previous call for bids for the Lisbon Metro project was scrapped after cost proposals exceeded the budget by nearly 46%.
- February 2025：
- The European Commission launched its first-ever FSR investigation into CRRC Qingdao Sifang Locomotive & Rolling Stock Co. Ltd.'s bid to supply trains to Bulgaria.
- March 2025：
- The EU dropped the FSR investigation into CRRC Qingdao Sifang Locomotive & Rolling Stock Co. Ltd. after the company withdrew from the bidding process.
- April 2025：
- The Lisbon Metro Violet Line project was launched.
- November 4, 2025：
- The European Commission announced an in-depth investigation into Portugal CRRC Tangshan Rolling Stock Unipessoal Lda.'s role in the Lisbon Metro Violet Line consortium.
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