EU Opens In-Depth Probe Into Suspected Chinese Subsidies in Lisbon Rail Tender

Brussels, November 5, 2025 — The European Commission has launched an in-depth investigation under the Foreign Subsidies Regulation (FSR) into whether foreign state support may have given Chinese state-owned manufacturer CRRC an unfair advantage in a Portuguese public tender for the construction and supply of light rail vehicles for Lisbon’s new metro line.

The probe will assess whether Portugal CRRC Tangshan Rolling Stock Unipessoal, a subsidiary of CRRC, benefited from foreign subsidies that distorted competition in the EU internal market. The Commission said its preliminary review found sufficient indications of possible market distortions to warrant a deeper investigation.

The notification concerns a consortium led by Portuguese construction group Mota Engil, which includes CRRC as a subcontractor. The consortium had submitted a bid in Metropolitano de Lisboa’s April 2025 tender for the design, construction, and maintenance of the new “violet” metro line.

Depending on its findings, the Commission may accept commitments, block the contract award, or issue a no-objection decision once the investigation concludes.

Stéphane Séjourné, the Commission’s Executive Vice-President for Prosperity and Industrial Strategy, said:

“Today, we are launching an investigation under the Foreign Subsidies Regulation to assess whether foreign subsidies allowed the Chinese state-owned rolling stock manufacturer CRRC to submit an unduly advantageous offer in a tender for light rail vehicles in Portugal. Europe’s openness depends on all participants playing by the rules. Protecting our Single Market from distortions is essential to ensure fair competition, support companies that compete on merit, and safeguard the Union’s economic security.”

Source: https://ec.europa.eu/commission/presscorner/detail/en/mex_25_2606

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