News & Reviews News Wire DC Metro funding bill would block purchase of Chinese equipment NEWSWIRE

DC Metro funding bill would block purchase of Chinese equipment NEWSWIRE

By Angela Cotey | April 15, 2019

| Last updated on November 3, 2020


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CRRC_Innotrans16_Lassen
Visitors look at models of CRRC equipment at InnoTrans in Berlin during the 2016 trade show. New legislation would block Washington’s Metro from buying equipment from CRRC.
TRAINS: David Lassen

WASHINGTON — Legislation proposed by Washington-area senators would authorize 10 years of funding for the DC Metro system — but only if Metro agrees not to buy rail cars from China.

The bill by Sens. Mark Warner (D-Va.), Chris Van Hollen (D-Va.), and Ben Cardin (D-Md.) would given Metro $150 million a year for capital expenses, the Washington Post reports. But the legislators are adding a provision that would prohibit contracts with firms based in China or other countries with laws requiring companies to cooperate with state intelligence or other government agencies.

The provision reflects concerns that China’s state-owned rail equipment company CRRC can underbid other manufacturers because of government subsidies, and that the equipment could be a platform for cyberespionage. [See “CRRC interest in Washington Metro contract raises cybersecurity concerns,” Trains News Wire, Feb. 26, 2019.]

CRRC is pursuing a contract to build up to 800 new railcars for Metro, a deal that could be worth more than $1 billion. A company spokesman dismissed the security concerns as “ludricrous.”

It would be the second such bill addressing concerns about Chinese transit equipment. Four senators introduced a bill in March that would prohibit any U.S. transit system from using federal funds to buy railcars or buses from Chinese companies, according to Eno Transportation Weekly.

17 thoughts on “DC Metro funding bill would block purchase of Chinese equipment NEWSWIRE

  1. Charles, I am also a free trade advocate,however,if the American taxpayers have to contribute to a transportation option like what is featured in this article,then the money should go back to a domestic enterprise. I would be almost certain that when China or Japan have a publicly funded transportation system,then the components come from their own country. And Braden,the 64% American made content for the Big 3 auto makers that you mentioned may or may not be correct,but you stated that and therefore I will accept that figure. However,due to NAFTA,a lot of our components are either made in Canada or Mexico and a lot of trade goes back and forth between the three countries,which is a good thing for the railroads,especially Kansas City Southern and Canadian National,so if you counted North American made components the percentage would be way higher. Toyota,Honda and Nissan will always be Japanese just like Ford,Chevrolet and Jeep will always be American.

  2. What other manufacturers exist in the US that are not part of a foreign owned company. Remember much of the steel in this country is in fact made at Russian owned US based steel plants. Like it or not it’s a global economy. The last time there was a big push for US only content train builders we had the Boeing Vertol fiasco. They built cars that rusted out right away and their main beams cracked. Right after that they declared bankruptcy and folded.

  3. So, Roger, you don’t think Boeing, Apple and GM shouldn’t sell their products in China? Without the China market all three would cease to exist.

    Free trade is a necessity. It’s that or The Depression.

  4. What a sec.. I thought the Red Team / Blue Team tag-team message was that Trump was the protectionist and the Free Market Loving Blue Team was opposed to protectionism because (well) it’s the opposite of the Red Team (for this particular year).

    If these guys don’t stick with the proper messaging the peasants will have to start thinking and THAT could cause real problems.

  5. Edward – Trade goes both ways, even trade with a loathsome commie dictatorship. This computer I’m posting with was made in China, as were both our televisions and God knows what else.

    We also sell to China. China is the biggest customer of GM, which is an American company, and is probably in the top two for American companies like Boeing and Apple. We also sell foodstuffs and many other materials and products to Chna.

    If we expect China to buy our airplanes then we need to buy their railcars.

    As far as the security concerns, this is ludicrous. An earlier article (not this one) on the subject stated that railcars running through and under DeeCee could spy electronically on government agencies. If China wants to spy on US government buildings (and I’m sure they do) they don’t need railcars to do it. That’s probably the most difficult possible way in any case.

    Also, government buildings are spread throughout Maryland and Virginia (NSA and CIA among others) and our military has bases and offices worldwide. Spying by railcars confined to a relatively small area in/ around DeeCee is, as the railcar executive states, ludicrous.

  6. Speaking of Honda… American made Hondas have 80%-98% US made content.. The Big 3 don’t even surpass 64% The Japanese are more American than our own domestic product..

  7. Made in the USA by Americans working for a company that is based and was founded in the USA should be the standard,especially when public funds are used in any way to sustain the operation.

  8. Allowing these cheap foreign companies to run off the quality builders of American rail cars such as Budd and Pullman Standard is an industrial tragedy. All the technology shifted to off shore entities.

  9. Let’s go through the Senators’ homes, offices, automobiles, etc., and see what’s made in China. Or more to the point, what is NOT made in China. There wouldn’t be much left, would there?

  10. Thats is correct, trade is both ways, btw Toyota, Honda,BMW, YES BMW, Hyundai have assembly plants in the US of A. And have for years. Made in USA is double-edged sword. Those aforementioned vehicles ARE made in USA. So……. how specific do you want Made in USA to be? I was Made in USA (Chicago) My parents weren’t,

  11. JAY – Pathetic rhetoric. Do you actually think China has sold high-tech stuff all over the world because their stuff is junk?

    Some companies produce better products than others – largely based on how much they want to spend on outsourced parts, and not at all based on the plant’s location.

    I purchased a store-brand tool chest that is junk – not because where it was made but because the drawer glides are cheap dirt. However a tool chest isn’t high tech. A rail car is.

    As far as cars, it’s pretty well known that in 2019 auto assembly plants all over the world produce exactly the same quality of fit and finish. A GM plant in China is the same as a GM plant in Mexico is the same as a GM plant in Michigan.

    The days when I would select a car based on where it was made (even which Chrysler plant a few miles apart in Detroit/ Hamtramck/ Windsor) were many decades ago. In 2019, a robot in USA or a robot in China or a robot in Canada are all equally skilled and all have the same work ethic.

  12. Buy American
    We get Enought Junk from China as it is
    The only thing you get from China is cheap
    Ask the City of Chicago and others who bought cheap
    Go to this link and look at the issues Singapore is having with their China Cars
    ttps://qz.com/724156/the-chinese-company-making-boston-and-chicagos-new-subway-cars-has-big-problems-in-singapore/
    You want to go for a ride on this junk ?
    Dont think so

  13. Charles/Edward…it works even more than just between the U.S./China, my computer was actually assembled in Mexico, and it’s an Alienware(Dell) system, if you own a LED TV, the screen is made in S. Korea by Samsung. Most off brands are made in China, when you want to buy a Brand name like Sony or Samsung, you know what country that’s from, CRRC has built assembly plants in both Massachusetts and Illinois to supply the transit cars they’re making for those systems…I presume the same would happen to cars made for Washington DC Metro as well.

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