BRUSSELS, April 21 (Reuters) - A Chinese company that was among those chosen to build a new Lisbon subway line benefited from unfair foreign subsidies, the European Commission said on Tuesday, forcing
EU finds Chinese bidder in Lisbon subway line benefited from unfair subsidy
European Commission Investigation into Lisbon Subway Procurement
BRUSSELS, April 21 (Reuters) - A Chinese company that was among those chosen to build a new Lisbon subway line benefited from unfair foreign subsidies, the European Commission said on Tuesday, forcing consortium leader Mota-Engil to hire a Polish company instead.
Details of the Violet Line Project
The Metropolitano de Lisboa, which commissioned the Violet Line, was authorised to hire the Mota-Engil-led consortium provided it replaced Chinese rolling stock manufacturer Portugal CRRC Tangshan with Polish rival PESA, the Commission said in a statement.
Commission's In-Depth Investigation
The Commission began an in-depth investigation, in late 2025, which found the unit of Chinese state-owned CRRC had benefited from foreign subsidies that distorted the procurement procedure and gave it "an unfair competitive edge" to the detriment of other bidders.
Reactions from Stakeholders
The China Chamber of Commerce to the EU said the bloc's foreign subsidies rules "grants the European Commission excessively broad and unenforceable discretionary power," in a statement following the announcement.
Portugal CRRC Tangshan did not immediately respond to a request for comment.
Project Background and Financial Details
The Violet Line is a light-rail surface metro linking Odivelas and Loures, both to the north of Lisbon. The project has a base price of around 600 million euros ($700 million) and is scheduled for completion in 2029.
Currency Exchange Rate
($1 = 0.8502 euros)
Reporting Credits
(Reporting by Inti Landauro and Sergio Goncalves; Editing by Barbara Lewis)
