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2025-05-27 | All chapters

Promoting Fair Competition in China’s Urban Rail Market

According to the European Chamber’s Business Confidence Survey 2025, 47 per cent of European respondents from the transport and logistics sectors reported losing business due to market access restrictions and regulatory hurdles.

In the rail sector, foreign-invested enterprises in China have long faced unequal treatment, particularly in urban rail projects. A key barrier was the 2014 version of the Tender Evaluation Method for Urban Rail Transit Vehicles (Tender Evaluation Method), issued by the China Association of Metros. This method embedded discriminatory scoring against wholly foreign-owned enterprises and foreign-controlled joint ventures. As many local urban rail projects adopted this template in the bidding process, it could determine the outcome of a bid, prompting Chinese original equipment manufacturers to avoid foreign component suppliers entirely.

Since 2020, the European Chamber’s Rail Working Group has tirelessly advocated for a fairer evaluation system. Through annual Position Papers, targeted advocacy letters and direct engagement with key authorities—including the State Council, the National Development and Reform Commission, the Ministry of Commerce, and their local counterparts—the working group persistently highlighted the issue. At the same time, the Chamber kept European stakeholders closely informed, ensuring a coordinated approach to advocacy.

As a result, a revised version of the Tender Evaluation Method was released in December 2024, removing the discriminatory scoring system. This change marks a significant step toward eliminating de facto discrimination and restoring a level playing field for foreign companies in China’s urban rail market, improving the investment confidence of foreign participants in the rail transportation sector.

The European Chamber will continue to monitor how new policies are implemented and highlight any discriminatory treatment to the authorities. Furthermore, in addition to the urban rail market, the Chamber will continue to advocate for a level playing field between Chinese and foreign players in other rail markets, including long-distance rail transport and locomotive products.

Learn more about the Rail Working Group.