The European Commission has launched an investigation under its Foreign Subsidies Regulation (FSR) to determine if a Portuguese subsidiary of Chinese state-owned rolling stock manufacturer CRRC had an unfair advantage when bidding for a rail contract in Lisbon.

A consortium led by Portugal’s Mota-Engil was one of four bidders responding to the April 2025 tender for the design, construction and maintenance of the “Violet line” – an 11km, light rail surface extension of the Lisbon Metro.

A winner for the tender has not yet been announced.

CRRC subsidiary Portugal CRRC Tangshan Rolling Stock was part of the Mota-Engil consortium, and it was a notification from Mota-Engil that sparked the European Commission’s investigation.

The Commission said that its preliminary assessment found sufficient indications that Portugal CRRC may have benefited from foreign subsidies that distorted the internal market.

The probe will assess whether such subsidies gave the company an unfair advantage in the tender.

Depending on the findings, the Commission may accept remedies, prohibit the contract award, or issue a no-objection decision.

Stéphane Séjourné, the European Commission’s executive vice-president for prosperity and industrial strategy, said: “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.”

Railway Pro notes that the probe could delay the project. “Any ruling that restricts the involvement of one consortium could lead to a re-evaluation of bids and extend the project timeline,” it stated.