RELATED: Bill would ban use of fed funds for Chinese rolling stock
House passes bill banning usage of Fed funds for Chinese rolling stock
The authors assert Chinese state-owned and state-supported enterprises have used subsidized “bargain prices” well-below competitive market price to win contracts throughout the U.S.

During a October 2017 media event, dignitaries took a ride on one of the four pilot cars to be sent to Boston for testing. Photo: CRRC

During a October 2017 media event, dignitaries took a ride on one of the four pilot cars to be sent to Boston for testing. Photo: CRRC
The House voted to pass H.R. 2500, the National Defense Authorization Act (NDAA) for Fiscal Year 2020. In the bill’s base text was a provision blocking federal transit dollars for procurement of electric railcars from Chinese State Owned Enterprises (SOEs), and other state-supported companies, originally introduced in the Senate by Sen. John Cornyn (R-TX), and the House by Rep. Harley Rouda (D-CA), as part of the Transit Infrastructure Vehicle Security Act (TIVSA).
“China’s ‘Made in China 2025’ initiative is an unmistakable effort to harm American manufacturers by subsidizing Chinese rail and bus industries,” said Rep. Rouda. “Chinese companies misrepresent themselves as benevolent actors, but let’s be clear: this is an attack on our economy and national security.”
Specifically, the provision prohibits financial assistance to be used in awarding a contract or subcontract to an entity for the procurement of rail rolling stock for use in public transportation if the manufacturer is owned, controlled by, or legally or financially related to corporations under certain conditions identified in the bill that designate the corporation to be a state-sponsored or owned enterprise located in adversarial non-market economies like China.
According to the bill’s authors, the Chinese government continues to use a range of state subsidies and predatory practices to support its market ascension in certain sectors of this country’s economy. Two of these sectors, rail manufacturing and bus manufacturing, are included as part of China’s “Made in China 2025” initiative, a plan targeting global dominance in areas that the Chinese government considers most strategic to its global aims.
The authors also assert that Chinese state-owned and state-supported enterprises have used subsidized “bargain prices” well-below competitive market price to win contracts throughout the U.S., with a number of large, metropolitan areas having recently awarded rail rolling stock procurements to a Chinese state-owned enterprise. They believe there are a number of threats these procurements pose, including impeding economic competitiveness and overtaking the supply chains that support U.S. public transportation agencies. Finally, it is believed that Chinese state-owned and state-supported enterprises have increased security vulnerabilities and create new risks for rolling stock procurements.
More Management

Bringing Austin’s First Light Rail System to Life
Austin Transit Partnership CEO Greg Canally discusses the city's nearly 10-mile light rail project, its collaborative approach to project delivery, the importance of community engagement, and the milestones ahead as construction approaches in 2027.
Read More →
ETA CEO John Maglio on Transit Technology, Innovation, and Building Agency Trust
ETA founder and CEO John Maglio explores the evolution of transit technology, the importance of reliable systems, and how stronger partnerships can help agencies improve operations and the passenger experience.
Read More →
Metra Draft Plan Outlines Costs, Service Improvements for Regional Rail
The Systemwide Network Plan identifies infrastructure needs and potential investments to expand all-day, bidirectional rail service across the Chicago region.
Read More →
New Orleans RTA Names Augustine III as New CEO
In this edition, we also spotlight recent personnel moves at HDR, PATH, STV, and more, highlighting the people taking on new roles across the transportation industry.
Read More →
How Transit Agencies Are Using Free Rides to Improve Voting Access
Transit agencies are using fare-free service, trip-planning tools, and targeted rides to improve voting access. See what other agencies can learn from these efforts.
Read More →
Caltrain’s Electrification Drives a New Era of Ridership Growth
The railroad’s shift to electric service has brought more frequent trains, stronger customer satisfaction, and increased ridership, earning it APTA’s Outstanding Public Transportation System award.
Read More →
Chicago, Charlotte Transit Agencies Expand Rider Support Programs
CTA launched crisis intervention teams as CATS prepares to deploy fare ambassadors, expanding customer assistance and security efforts across both systems.
Read More →
New York MTA Launches Historic $1.9B Signal, Track Modernization Project
Funded in part by congestion pricing revenue, the project will replace nearly century-old signals along the A and C lines in Brooklyn and Queens.
Read More →
Brian Dickson on Building Stronger, More Resilient Transportation Organizations
Bus Business Consultants Founder Brian Dickson discusses the leadership principles, operational discipline, and strategic planning that separate transportation companies positioned for long-term success from those stuck in survival mode.
Read More →
LA Metro Breaks Ground on Vermont BRT Project
The 12.4-mile corridor is projected to serve 66,200 daily riders, reduce travel times by up to 24%, and create the nation's busiest bus rapid transit corridor.
Read More →