The two train companies that couldn't merge can still make trains, and still sell them to whomever they want. European purchasers can still buy them. And after reading articles like this one, these two companies have a big competitive advantage: they don't include Chinese backdoors. Maybe they're small now, but if the Chinese train/bus/etc. manufacturing companies end up being blacklisted in the EU, these two companies will grow. And, better yet, there will still be some healthy competition in the space.
I'd like to post some questions for thought:
1. What is exactly the bidding process of that particular transaction the OP described?
2. What is exactly in the contract? Does it force the Chinese company to use a lot of local companies for sub-contracting, at the same time keeping a very low profit? In essence, this basically means the EU companies grabbed the biggest share while the Chinese company just got the job. I'm not saying this is the case, but I highly doubt it IS the case as I heard similar stories from other companies.
My sense is that conspiracy theorists are essentially a cron job crying "Wolf!" every 60 seconds. The occasional real-world wolf does not justify paying any attention to the alarms. OTOH, it's a false dichotomy to believe that the false alarms prove the non-existence of wolves.
Just like someone has the capability to do with virtually everything we have running software.