Chinese railway giant CRRC has been placed under investigation by the European Commission in relation to Lisbon’s new light rail tender to establish whether any state support it has received from the Chinese government has affected the fairness of competition. This investigation is an investigation initiated under the EU’s Foreign Subsidies Regulation (FSR), which entered into force in 2023.
CRRC Faces EU Scrutiny Over Foreign Subsidies
The investigation began after a group of companies, including Mota-Engil and CRRC Tangshan Rolling Stock Unipessoal, notified the EU authorities after observing a possible financial interest. The Commission made it clear that Europe is open to international investment, but that all firms must have equal opportunities. The researchers will therefore check whether Chinese state support has affected CRRC’s chances of outbidding its European competitors with a low price and thus distorting equal bidding opportunities.
CRRC Investigation Reveals EU Competitive Safeguards
Stéphane Séjourné, Vice-President for Welfare and Industrial Strategy, emphasised the importance of the situation: “While Europe is open and willing to international partnerships, it is crucial that this cooperation is transparent and that everyone plays by the same rules.”
If any irregularities are detected, the Commission may take the necessary measures and even block the Lisbon contract. This project, which aims to expand the Lisbon metro system and increase mobility in the capital, was launched in April 2025 and covers design, implementation and maintenance in a single contract. This case demonstrates the EU’s commitment to address market fairness and prevent outside interference in public procurement through regulations such as the FSR.
