European Commission Blocks China in Lisbon Subway Deal
A Chinese company involved in building Lisbon's new subway line was found to have received unfair foreign subsidies, leading consortium leader Mota-Engil to hire a Polish company instead. The European Commission's investigation highlighted the unfair competitive advantage granted to China, altering the procurement procedure.
The European Commission has blocked a Chinese company from participating in the construction of a new subway line in Lisbon. This decision came after an investigation revealed the company gained an unfair advantage through foreign subsidies.
As a result, the consortium leader, Mota-Engil, has been instructed to replace the Chinese rolling stock manufacturer, Portugal CRRC Tangshan, with the Polish company PESA. The Commission noted these subsidies distorted procurement procedures, favoring the Chinese firm over its competitors.
The Violet Line project, connecting Odivelas and Loures in Lisbon, is valued at 600 million euros and is expected to be completed by 2029. Meanwhile, the China Chamber of Commerce has criticized the Commission's foreign subsidy rules as granting excessive power.
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