AFS, Industry Coalition Oppose Taxpayer Funding for Rail Purchases from China-Controlled Companies

AFS and an industry coalition are fighting for language in the FY 2020 National Defense Authorization Act (NDAA) that will prevent the use of taxpayer dollars for purchases of rail equipment from companies controlled by China.

The Chinese state-owned enterprise, CRRC, has made aggressive inroads into the U.S. by using state-backed financing, below-market pricing, and other anti-competitive tactics. Without this language, CRRC will decimate our rail market and its jobs.

To date, CRRC has secured $2.6 billion in U.S. taxpayer-supported transit contracts to provide railcars and locomotives made by a 100% state-owned and directed Chinese company for Boston, Chicago, Philadelphia, and Los Angeles. Federal funding is included in three of those four contracts, and CRRC is now seeking similar contracts in Washington, D.C., and New York.  CRRC does not source in the United States, nor does it manufacture in the United States.