Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Chinese Railroad Company Pulls Out of Bulgaria as EU Probes Into Unfair Subsidy Begins

Daniel Kim Views  

中철도기업, EU 불공정 조사 시작되자 불가리아서 철수

A Chinese state-owned company, which had won a public tender project in Bulgaria, a member of the European Union (EU), has abandoned the contract after initiating an EU investigation into unfair subsidies.

The EU Commission announced on the 26th (local time) that CRRC Qingdao Sifang, a subsidiary of CRRC, withdrew from the tender contract for public procurement it had signed with the Bulgarian Ministry of Transport. Consequently, the EU Commission has stated it will also conclude its investigation into the suspected subsidies received by CRRC Qingdao Sifang approximately six weeks after the announcement of the investigation.

Previously, CRRC Qingdao Sifang had won the contract by bidding to manufacture 20 electric trains for 610 million euros ($660 million). However, suspicions arose that they received subsidies from the Chinese government as their bid was about half the amount offered by other companies, such as Spain’s Talgo. In response, the EU Commission announced on the 16th of last month that there were “sufficient signs of having received foreign subsidies with the extent of distorting the domestic market” and that they would investigate whether there was a violation of the Foreign Subsidy Regulation (FSR). This was the first investigation under the FSR, introduced in July last year.

The FSR requires companies that signed a public tender contract exceeding 250 million euros ($270 million) with an EU member state to report in advance if they have received at least 4 million euros ($4.3 million) in subsidies from a third country within the last three years. The regulation was introduced to ensure that EU companies, subject to strict subsidy regulations, do not suffer disadvantages due to foreign companies receiving indiscriminate subsidies. Violating this regulation can result in a fine of up to 10% of the total sales.

Thierry Breton, EU Commissioner for the Internal Market, said, “The EU’s single market will be open to companies that compete fairly and play by the rules,” adding, “(We will continue to take) all necessary measures quickly and decisively to maintain Europe’s economic security and competitiveness.”

Daniel Kim
content@viewusglobal.com

Comments0

300

Comments0

[BUSINESS] Latest Stories

  • Honda's NSX Returns: A 1,000-Horsepower Electric Rival to Lexus LFR
  • Honda’s S7 Electric SUV: A Major Player in the Race for EV Dominance
  • Lamborghini's First EV: A 2,000-Horsepower Beast Built for Speed and Emotion
  • Ford Revives Classic Design with the 2025 Bronco Heritage Edition
  • ID.EVERY1: Volkswagen's $21K Electric Vehicle Aims to Make Green Driving Accessible
  • Toyota’s bZ3X SUV Surges with 10,000 Pre-Orders: A New Era in EVs

You May Also Like

  • 1
    Sweet and Salty? Tastes Great, But Here's What It's Doing to Your Body

    LIFESTYLE 

  • 2
    Yogurt: Diet Savior or Sneaky Saboteur? Here's What You Should Know

    LIFESTYLE 

  • 3
    Blackberries vs. Raspberries: Which Berry Is the Low-Calorie King?

    LIFESTYLE 

  • 4
    Why Some People Gain Weight on Salads—and Others Don’t

    LIFESTYLE 

  • 5
    This Vitamin Could Help You Fight Fatigue, Infections, and More

    LIFESTYLE 

Popular Now

  • 1
    Olive Oil on an Empty Stomach – Hype or Health Miracle?

    LIFESTYLE 

  • 2
    Why Guava Is a Must-Have for Anyone Watching Their Blood Sugar

    LIFESTYLE 

  • 3
    Parkinson's Puzzle: Study Explains How PINK1 Gene Fights Cell Damage

    LIFESTYLE 

  • 4
    Feeling Drained No Matter How Much You Sleep? Here’s Why

    LIFESTYLE 

  • 5
    Hope for Alzheimer’s? Anti-Amyloid Treatments Linked to 50% Lower Risk

    LIFESTYLE 

Must-Reads

  • 1
    Sweet and Salty? Tastes Great, But Here's What It's Doing to Your Body

    LIFESTYLE 

  • 2
    Yogurt: Diet Savior or Sneaky Saboteur? Here's What You Should Know

    LIFESTYLE 

  • 3
    Blackberries vs. Raspberries: Which Berry Is the Low-Calorie King?

    LIFESTYLE 

  • 4
    Why Some People Gain Weight on Salads—and Others Don’t

    LIFESTYLE 

  • 5
    This Vitamin Could Help You Fight Fatigue, Infections, and More

    LIFESTYLE 

Popular Now

  • 1
    Olive Oil on an Empty Stomach – Hype or Health Miracle?

    LIFESTYLE 

  • 2
    Why Guava Is a Must-Have for Anyone Watching Their Blood Sugar

    LIFESTYLE 

  • 3
    Parkinson's Puzzle: Study Explains How PINK1 Gene Fights Cell Damage

    LIFESTYLE 

  • 4
    Feeling Drained No Matter How Much You Sleep? Here’s Why

    LIFESTYLE 

  • 5
    Hope for Alzheimer’s? Anti-Amyloid Treatments Linked to 50% Lower Risk

    LIFESTYLE 

Share it on...