In recent years, Chinese companies have frequently won bids in overseas markets with a low-price competitive strategy. However, as the international community scrutizes this economic model, Chinese opportunism is backfiring.
Taking the bidding for the Bulgarian high-speed rail project as an example, China’s CRRC Qingdao Sifang Company, a subsidiary of China Railway Rolling Stock Corporation (CRRC), far underbid its competitors. An EU investigation found that the Chinese government provided CRRC with a subsidy of up to 1.75 billion euros, which is 2.9 times the total amount of the Bulgarian high-speed rail project, 610 million euros. CRRC Qingdao Sifang ultimately chose to withdraw from the bidding, avoiding potentially hefty fines and embarrassment.
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China’s Low-Bid Scams Expose Shoddy Projects:Global Action Against China’s High-Speed Rail, EV Fraud
