Beijing has considered the European Commission's investigation into the Chinese company CRRC to be “discriminatory.” CRRC is accused of benefiting from public subsidies in a tender for the new Violet Line of the Lisbon Metro, which allegedly distorted competition.

At issue is an investigation initiated in November by the European Commission under the Foreign Subsidies Regulation to determine whether public support gave the Chinese company CRRC an unfair advantage over European competitors in the Lisbon Metro tender for the construction of the new Violet Line, which could result in corrective measures, a ban on the award, or a decision of no objection, according to a report by Eco.

The European Commission opened an in-depth investigation on November 5 to determine whether the Chinese state-owned rolling stock manufacturer CRRC, part of the Mota-Engil consortium, had an “undue advantage” in the tender for the Lisbon Metro's Violet Line.

“The Commission has opened an in-depth investigation under the regulation on foreign subsidies into possible market distortions caused by foreign subsidies. The investigation will examine whether these subsidies gave the Chinese state-owned rolling stock manufacturer CRRC an unfair advantage in participating in a public tender for the acquisition of light rail vehicles in Portugal,” the institution announced in a statement.

Brussels said the investigation followed a notification from a consortium led by Mota-Engil, which includes subcontractors such as Portugal CRRC Tangshan Rolling Stock Unipessoal and participated in a Lisbon Metro tender launched in April 2025 for the design, construction and maintenance of the new Violet Line.

“Atrocious”

The Chinese Ministry of Commerce's observation was part of a broader protest against the "flood of investigations" opened by the European Union (EU) against companies such as Nuctech, CRRC, and the Temu platform, deeming the measures "atrocious" and "discriminatory."

Ministry spokesperson He Yadong expressed "firm opposition" to Brussels' actions and called on the EU to "immediately abandon the irrational crackdown on foreign-owned companies, including Chinese ones," and apply its regulations against foreign subsidies in a "prudent" manner to ensure a "fair and predictable" business environment.

He further stated that Beijing is "closely monitoring" these actions and will "take the necessary measures to resolutely protect the legitimate rights and interests of Chinese companies."

The statements come after the European Commission announced an in-depth investigation into Nuctech, a state-owned manufacturer of security equipment, on suspicion of having benefited from public support that distorts competition in the European market, including state guarantees, preferential tax treatment, and financing on advantageous terms.

According to Brussels, these subsidies may have given Nuctech an advantage in public tenders, affecting competition within the EU.

Last week, the Commission also conducted a surprise inspection at the European headquarters of the Chinese e-commerce platform Temu in Dublin, at a time when EU countries were preparing to apply a three-euro tax, starting in July 2026, on orders under 150 euros from China.