EU Interference Causes Chinese Firm to Lose Lisbon Metro Contract
The European Commission stated on Tuesday that a Chinese company involved in the construction of a new metro line in Lisbon benefited from unfair foreign subsidies, forcing the lead company of the consortium, Mota-Engil (MOTA.LS), to replace it with a Polish firm.
In a statement, the European Commission said that the Lisbon Metro Company (Metropolitano de Lisboa) was permitted to hire the Mota-Engil-led consortium only if the consortium replaced the Chinese vehicle manufacturer, Portugal CRRC Tangshan, with its competitor, Poland’s PESA. The Lisbon Metro Company is responsible for commissioning the construction of the Violet Line.
Following the announcement, the European-China Chamber of Commerce issued a statement saying that the EU’s foreign subsidy rules "grant excessive and unenforceable discretion to the European Commission."
China Railway Rolling Stock Corporation (CRRC) Tangshan, Portugal Co., Ltd. has not yet commented on the matter.
The Violet Line is a light rail ground-level metro line connecting Odivelas in northern Lisbon to Loures. The project's base cost is approximately €600 million (US$7 billion), with completion scheduled for 2029.
Source: Reuters
Original: toutiao.com/article/1863666210924547/
Disclaimer: The views expressed in this article are solely those of the author.