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.
