EU probes Chinese firm over Lisbon metro bid

The European Commission is investigating whether a Chinese state-owned rail manufacturer received unfair subsidies when bidding for Lisbon’s new metro line, a probe that could delay the project and reshape the tender process.

The European Commission has opened a Foreign Subsidies Regulation investigation into Portugal CRRC Tangshan Rolling Stock, examining whether the Chinese state-owned manufacturer’s subsidiary gained unfair advantage when bidding for Lisbon’s €11km Violet line metro extension.

No winner has been announced.

The Commission’s preliminary assessment found “sufficient indications” that Portugal CRRC may have received foreign subsidies distorting the internal market. The investigation will determine whether to accept remedies, block the contract award, or clear the bid.

“Protecting our Single Market from distortions is essential to ensure fair competition,” said Stéphane Séjourné, executive vice-president for prosperity and industrial strategy.

The investigation could delay the project and potentially force a re-evaluation of all bids, according to Railway Pro.