Commission opens in-depth investigation into construction of Lisbon railway line under the Foreign Subsidies Regulation

The Commission has opened an in-depth investigation under the Foreign Subsidies Regulation into possible market distortions caused by foreign subsidies. The investigation will examine whether such subsidies gave the Chinese state-owned rolling stock manufacturer CRRC an unfair advantage in bidding for a public procurement tender for light rail vehicles in Portugal. 

Following a preliminary assessment, and without prejudice to the final outcome, the Commission considers that there are sufficient indications that Portugal CRRC Tangshan Rolling Stock Unipessoal may have benefited from foreign subsidies that distorted the internal market, warranting an in-depth investigation. The probe will assess whether such subsidies gave the company an unfair advantage in the tender. Depending on the findings, the Commission may, after its in-depth investigation, accept remedies, prohibit the contract award, or issue a no-objection decision.

The investigation follows a notification from a consortium led by Mota Engil, which includes subcontractors such as Portugal CRRC Tangshan Rolling Stock Unipessoal. The consortium participated in a Metropolitano de Lisboa tender launched in April 2025 for the design, construction, and maintenance of the new 'violet' line. This demonstrates the Commission's determination to ensure fair competition and a level playing field in the EU internal market.

Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné, 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.”

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Foreign Subsidies Regulation