China Railway CRRC: Are subsidies hindering EU competition?
・The reason is dumping due to unfair subsidies.
・Start of subsidy investigation for Bulgarian railway tender
We will provide you with a summary of articles published in the Nikkei Shimbun.
European Commission: February 16th
“China China National Car Corporation (CRRC) receives subsidies from the Chinese government.”
An investigation has been launched based on the EC’s large-scale and public procurement regulations.
This may have significantly hindered market competition within the EU.
1. First survey of companies receiving foreign subsidies.
2. This is the first study based on large-scale public procurement regulations.
Bulgarian government public procurement:
Bulgarian railway rolling stock tender:
China’s CRRC overwhelmed Spain’s CAF with its unusually low price.
Successful bids from China CRRC:
‘The reason is dumping due to unfair subsidies from the Chinese government.’
The project covers successful bids for 20 electric locomotives and 15 years of maintenance work.
The winning bid was 1.2 billion leva (99 billion yen)
Decision-making powers of the European Commission:
If the EC determines that this bid constitutes unfair competition, it can prohibit the conclusion of the contract.
A final decision will be made by July 2, 2024.
https://www.nikkei.com/article/DGXZQOGR16E8B0W4A210C2000000/
European Commission launches detailed investigation into China’s CRRC
European Commission:
On February 16, we launched a detailed investigation into the CRRC based on the EU’s Foreign Subsidy Regulation (FSR).
Entry into force of the Foreign Subsidy Regulation (FSR):
The FSR prevents companies receiving government subsidies outside the EU from distorting the EU market.
Effective January 2023. Application began in July.
The Chusha Yomo is the first subject of this detailed investigation.
What is a four-way car?
China Car Sifang is one of the listed subsidiaries of China China Car Group (CRRC).
It was established in June 2015 through the merger of China North Car and China South Car.
Ministry of Transport and Communications of Bulgaria:
In May 2023, the company announced the large-scale procurement of railway vehicles.
Competitive bidding for 20 train sets and a 15-year maintenance contract using the centralized power system.
The planned bid price is 610 million euros (98.7 billion yen).
https://news.yahoo.co.jp/articles/7d00b92d4900a159ad54ce9e5033ec5c0eabf9ad