House Acts to Block Federal Funding for Rail Cars Built by Chinese State-Owned Companies

Elizabeth Brotherton-Bunch

Elizabeth Brotherton-Bunch Digital Media Director, Alliance for American Manufacturing

A big step in the right direction.

The House of Representatives on Friday passed the annual spending bill for the Defense Department, and the legislation included language to block federal transit dollars from being spent on electric rail cars made by Chinese state-owned companies.

The provision included in the National Defense Authorization Act (NDAA) passed by the House prohibits federal tax dollars from being used to award a contract or subcontract for the procurement of rail cars to be used in public transportation by state-owned or controlled companies from non-market economies like China.  

Although the NDAA passed on party lines, this specific legislation enjoyed bipartisan support, as it was originally sponsored by Reps. Harley Rouda (D-Calif.), Rick Crawford (R-Ark.), Scott Perry (R-Pa.), Kay Granger (R-Texas), Tim Ryan (D-Ohio), Eleanor Holmes Norton (D-D.C.), Randy Weber (R-Texas) and John Garamendi (D-Calif.).

The NDAA now heads to conference with the Senate, which previously passed its version of the defense authorization bill that included a similar provision that applied to both rail and buses. Sens. John Cornyn (R-Texas), Tammy Baldwin (D-Wis.), Mike Crapo (R-Idaho) and Sherrod Brown (D-Ohio) served as the original sponsors of the Transit Infrastructure Vehicle Security Act in that chamber.

Here at the Alliance for American Manufacturing, we encourage lawmakers to put forth a final NDAA conference report that includes the Senate version of this provision, as it applies to both types of public transit.

AAM President Scott Paul recently testified before the House Transportation and Infrastructure Committee about the risks of public transit made by Chinese state-owned enterprises (SOEs), and we’ve previously outlined some of the dangers.

Here’s what is happening: China’s state-owned or controlled companies severely underbid on government contracts to build local transit systems. They can do this because the goal isn’t to make money, as is the case with a business operating in an open market; China is aiming to dominate the global transit industry as part of its “Made in China 2025” plan. As such, it is heavily subsidizing these companies to gain an unfair advantage and nab contracts — and the plan is working.

Chinese SOEs like the China Railway Rolling Stock Corporation (CRRC) have won transit contracts in cities like Boston, Chicago and Philadelphia. CRRC beat its closest competitor, Canadian company Bombardier, by $34 million for the contract in Philly; its bid was $47.2 million lower than the one put forth by South Korea’s Hyundai Rotem, which already had a manufacturing presence in the city.

China is rigging the system — and as Scott Paul outlined to Congress, it is putting 90,000 jobs in the transportation supply chain at risk. A recent Oxford Economics report even estimated every $1 billion given to Chinese SOEs to build rail cars costs up to 5,100 U.S. jobs.

Meanwhile, there are major security concerns. For example, experts warn that China’s government already is using facial recognition technology to track its own people, and it is likely Chinese officials would do the same to track Americans (especially in cities like Washington, D.C., where CRRC is in the running for a contract). 

Now it’s up to YOU to get this legislation to the finish lineTell your lawmakers to back efforts to prohibit federal tax dollars from being given to Chinese state-owned or controlled companies to build rail cars or buses.

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Reposted from AAM

Posted In: Allied Approaches, From Alliance for American Manufacturing

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work