BUSINESS

China’s CRRC Dropped From Lisbon Rail Deal Following EU Subsidy Ruling

Published: Apr. 23, 2026 11:58 p.m. GMT+8

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The CRRC booth in Shanghai on April 14, 2026. Photo: VCG

A Chinese state-owned trainmaker has been removed from a light-rail project in Portugal after the European Commission required its exclusion as a condition for approving the contract.

On April 21, the European Union authorized a consortium led by Portuguese builder Mota-Engil to proceed with its 599 million euro ($701 million) bid for Lisbon Metro’s Violet Line, on the condition that it replace a local subsidiary of CRRC Corp. with a European subcontractor.

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EU approved Mota-Engil's 599M euro bid for Lisbon Metro Violet Line (11.5km, 678M total) on condition of replacing CRRC subsidiary with Polish PESA under FSR.
EC investigation cited CRRC's subsidies: 36B euros Chinese contracts, tax breaks, 471M direct funding.
Second CRRC exit (after Bulgaria); China Chamber disputes interference in <10% subcontract.

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Who’s Who

CRRC Corporation Limited: CRRC Corporation Limited, a Chinese state-owned trainmaker and the world's largest rail-transit equipment supplier, was excluded from Lisbon Metro’s 599 million euro Violet Line project in Portugal. The EU's Foreign Subsidies Regulation cited market-distorting subsidies (e.g., 36B euros in procurement, 471M euros funding). This follows its 2024 withdrawal from a Bulgarian tender.

Mota-Engil: Mota-Engil, a Portuguese builder, leads a consortium awarded a 599 million euro ($701 million) contract for Lisbon Metro’s 11.5-km Violet Line extension (total 678 million euros). The EU approved it on April 21 after requiring replacement of CRRC subsidiary with Polish firm PESA Bydgoszcz due to foreign subsidies concerns.

PESA Bydgoszcz: PESA Bydgoszcz, a Polish rolling-stock manufacturer, replaced CRRC Corp. as a subcontractor in Mota-Engil's 599 million euro bid for Lisbon Metro’s Violet Line, satisfying EU Foreign Subsidies Regulation requirements to avoid market distortion from foreign subsidies.

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