WASHINGTON – The final version of a defense funding bill in Congress would ban federal funding for transit equipment from Chinese companies — but would also delay that ban for two years in most cases.
Roll Call reports that the conference version of the National Defense Authorization Act would prohibit the use of federal dollars for rail equipment or busses from any enterprise owned or controlled by a foreign government. The provision is aimed primarily at CRRC, the Chinese company that is the world’s largest rail equipment manufacturer. [See “Proposed ban on Chinese railcars gets White House support,” Trains News Wire, Sept. 9, 2019.] Cybersecurity issues have often been cited as grounds for the ban, but there are also concerns that the company’s government backing allows it to underbid other, privately owned firms. [See “Railcar manufacturer CRRC a target in U.S.-China trade war,” Trains News Wire, June 25, 2019.]
However, the ban would only be immediately effective in Washington, D.C., where CRRC has bid for new equipment for the Washington Metropolitan Area Transit Authority. Elsewhere, there will be a two-year delay in implementation. The Chicago Tribune reports this might allow CRRC to expand its production in South Chicago, where subsidiary CRRC Sifang is currently building new cars for Chicago Transit Authority.
The final draft of the defense bill, created in a conference of House and Senate members, must still pass both houses of Congress and be signed by President Donald Trump.
“The current version of the NDAA ensures public transit agencies will continue to benefit from competition in the passenger rail car industry for at least two years after the NDAA is enacted,” Marina Popovic, human resources director and chief legal counsel for CRRC Sifang, said in a statement quoted by Roll Call and the Tribune.
The Chicago plant currently employs 100 workers, with another 70 jobs expected as production of the CTA cars ramps up. CRRC spokesman Dave Smolensky told the Tribune that the company could add 100 more jobs if it lands another contract.
The company has submitted a bid to Metra to build new railcars for the commuter railroad. Another affiliate, CRRC MA, is building equipment for the Massachusetts Bay Transportation Authority, Los Angeles Metro, and the Southeastern Pennsylvania Transportation Authority. The MBTA equipment has reportedly been sidelined by an unexplained noise in the underbody [see “MBTA pulls new Orange Line rail cars from service,” Trains News Wire, Dec. 4, 2019], while delivery of the SEPTA equipment is behind schedule [see “New SEPTA cars from CRRC to be delayed,” Trains News Wire, July 1, 2019]
