The European Commission has opened an in-depth investigation under the Foreign Subsidies Regulation (FSR) into potential market distortions caused by foreign subsidies in connection with a Portuguese public procurement procedure for light rail vehicles.
The inquiry will examine whether foreign state support may have given China’s state-owned rolling stock manufacturer CRRC an unfair advantage in the tender process for the design, construction and maintenance of a new light rail line in Lisbon.
Possible unfair advantage from foreign subsidies
Following a preliminary assessment, and without prejudging the outcome, the Commission found sufficient indications that Portugal CRRC Tangshan Rolling Stock Unipessoal Lda. may have received foreign subsidies that distorted the internal market, justifying the launch of a formal investigation.
The Commission will now assess whether these subsidies enabled the company to submit an unduly advantageous bid. Depending on the findings, the Commission may, after the in-depth investigation, accept commitments to remedy the distortion, prohibit the award of the contract, or issue a “no-objection” decision.
Case triggered by notification of Lisbon tender consortium
The investigation follows a notification submitted by 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.
The Commission stated that the inquiry underscores its determination to ensure fair competition and a level playing field in the EU single market.
Stéphane Séjourné, 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 have enabled the Chinese state-owned rolling stock manufacturer CRRC to submit an unduly advantageous bid in a Portuguese light rail tender.
Europe’s openness depends on all participants playing by the rules. Protecting our Single Market against distortions is essential to ensure fair competition, to support companies competing on their merits, and to safeguard the Union’s economic security.”
Potential impact on the Lisbon Metro project
The review is not expected to halt the violet line project entirely, but it could delay final contract decisions as the Commission’s investigation proceeds. Any ruling that restricts the involvement of one consortium could lead to a re-evaluation of bids and extend the project timeline.
The violet line is one of Lisbon’s most significant urban rail projects in recent years, encompassing the design, construction and maintenance of a new light rail system to expand the Portuguese capital’s metro network. The tender was launched in April 2025 by Metropolitano de Lisboa.
The Foreign Subsidies Regulation, in force since 2023, empowers the Commission to investigate and address distortions caused by financial contributions from non-EU countries that may unfairly influence competition within the EU.
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