(Bloomberg) -- A Chinese company abandoned a €610 million ($660 million) Bulgarian railway tender after a probe of the deal was opened by European Union regulators, who hailed the withdrawal as a boost to economic security.

CRRC Qingdao Sifang Locomotive Co. Ltd. withdrew from the invitation to supply and maintain 20 electric trains, the European Commission said in a statement, citing Bulgarian officials. 

The commission, which said last month it would investigate the Chinese company under a new subsidy regulation, added that the inquiry had been closed.

“Our first investigation under the Foreign Subsidies Regulation has already yielded results,” the statement quoted internal market commissioner Thierry Breton as saying. “We will continue to take all necessary measures to preserve Europe’s economic security and competitiveness – with assertiveness and speed,” he said.

The Foreign Subsidies Regulation is one of a series passed by Brussels in the past several years intended to bolster the bloc’s economic security, with China seen as a key focus.

Earlier: EU Probes Chinese Train Bid in Bulgaria Under Subsidy Regime 

Under the Foreign Subsidies Regulation, the EU has powers to vet subsidies that it argues can distort European markets. Regulators could issue fines, orders to suspend tenders or outright blocks of state takeovers.

The China Chamber of Commerce to the European Union said CRRC Qingdao’s withdrawal adds to evidence that the subsidies regulation is being used “as a new tool to deter foreign companies, coercing them into withdrawal and subsequent business exclusion”.

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