A 2019 law stopped Chinese state-owned and supported firms from bidding on federally funded transit contracts for rail cars and buses. But a loophole is allowing these companies to access tax funds to supply American airports.
Editor’s note: Alliance for American Manufacturing President Scott Paul sent this message to our email supporters on Monday. It’s reprinted in its entirety below.
Hi Friend—
Philadelphia’s transit system recently announced it is canceling a controversial, taxpayer-funded contract with a Chinese government-owned company called CRRC to build rail cars.
It’s clear why: CRRC was four years behind schedule and $50 million over budget – and never delivered a single rail car!
This failure is just one of several CRRC projects that have gone off the rails. Yet despite its bad track record – and the numerous security risks of allowing a company with ties to China’s military to build American infrastructure – CRRC and other Chinese firms are still able to bid on taxpayer-funded infrastructure projects.
Congress took action to prevent this from happening again, but loopholes are still benefiting these Chinese state-owned and –supported companies. It’s up to me and YOU to stand up for America’s manufacturers and workers!
Tell your Members of Congress to support the Airport Infrastructure Vehicle Security Act today!
It’s because of a loophole in the law that CRRC and other Chinese firms are able to access America’s taxpayer money to build rail cars and buses at airports.
Congress rightly passed a bipartisan bill in 2019 called the Transit Infrastructure Vehicle Security Act (TIVSA) that banned federal tax dollars from going to Chinese government-owned and –supported companies to manufacture rail cars and buses.
This law made a lot of sense. China’s transit manufacturers are massively subsidized by their government, which allowed them to severely underbid other companies for contracts. That meant our own taxpayer money was being used to undermine U.S. producers and workers throughout our supply chain.
In one case, Philadelphia’s transit agency awarded its contract to CRRC, even though a local rail car factory bid on the same work. That factory ultimately shut its doors. What a wasted opportunity to support local job creation and grow the local economy!
TIVSA aimed to get things back on track. But the new law only applies to transit projects and doesn’t apply to federally funded contracts at U.S. airports. Not surprisingly, companies like CRRC and fellow Chinese state-supported company BYD are now poised to exploit that loophole. Major U.S. airports in Tampa, Kansas City, Los Angeles, and Atlanta have already purchased buses using federal resources that would otherwise be prohibited if not for this loophole.
It’s time to close the TIVSA loophole. Not only are U.S. jobs and companies in danger but allowing companies with alleged ties to China’s military to supply critical airport infrastructure is a major national security risk.
Please join me in telling Congress to pass the Airport Infrastructure Vehicle Security Act and make sure it makes it into the final FAA reauthorization bill!
Thanks,
Scott Paul
President
Alliance for American Manufacturing