On 16 February, the Commission launched its first in-depth investigation under the Foreign Subsidies Regulation EU 2022/2560 (FSR) regarding a public tender bid by China’s state owned train manufacturer CRRC’s Qingdao Sifang Locomotive Co Ltd in Bulgaria. The new FSR allows the Commission to tackle distortions caused by unfair foreign subsidies and thus ensure a level playing field for all companies operating in the Single Market.
The investigation concerns a public procurement procedure for a public contract worth EUR 610 million relating to the provision of electric trains and their maintenance, as well as training of staff, in Bulgaria. Under the FSR, companies are obliged to notify their public procurement bid in the EU when the estimated contract value exceeds EUR 250 million and the bidder has been granted a foreign subsidy of at least EUR 4 million by a non-EU country in the last three years preceding the notification.
The Commission found that there are sufficient indications that CRRC has received a foreign subsidy that distorts the internal market. It concluded that due to the foreign subsidy, CRRC may have submitted an unduly favourable bid that allowed it to unfairly undercut other companies participating in the tender.
For more information: Commission’s Press Release