EU Probing Chinese Train Maker Under First Use of Foreign Subsidy Rules
The European Commission is investigating whether subsidies for Chinese train company CRRC Qingdao Sifang Locomotive are giving it an unfair advantage as part of a Bulgarian bid for electric trains. The probe, launched last week, is the EU’s first “in-depth investigation” under its new Foreign Subsidies Regulation, which took effect last year and which could allow the EU to block the contract award or require CRRC to “effectively remedy the distortion” caused by the subsidies.
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The commission said it began the probe after CRRC notified the EU about its plans in January to participate in the tender by Bulgaria's Ministry of Transport. The EU found that there are “sufficient indications that this company has been granted a foreign subsidy that distorts the internal market.” The commission must make a final decision by July 2.