24 Aug 2018

US SENATE AGREES TO ONE-YEAR BAN ON RAIL CAR AND BUS PROCUREMENTS FROM CHINESE-OWNED COMPANIES

The trade war between the United States of America and the People's Republic of China has touched the bus industry. Recently the U.S. Senate agreed to a one-year ban on any new procurements of mass transit rail cars or buses from companies owned or subsidized by the government of the People’s Republic of China, if the procurement uses any Federal Transit Administration formula or bus funding.

In what looks like a complex ruling on procuring rolling-stock with public funding, it seems certain that some version of the ban will be enacted into law in the final 2019 DOT appropriations act. Since some version of a ban on new Chinese rolling stock is now in both the House and Senate versions of the bill. The US Senate language adopted narrows and clarifies the House language significantly, Eno, Centre for Transportation, clarifies on its website www.enotrans.org. The Eno Center for Transportation is a neutral, non-partisan think-tank that promotes policy innovation and provides professional development opportunities across the career span of transportation professionals. Editor Jeff Davis explains in his article on the Eno website to what extend the Senate prohibition might reach and which formula's might be effected by the prohibition and also what the impact might be on the existing contracts with Chinese rolling-stock manufacturers in regard also to international agreements. Eno says the Senate language is a more refined and precise version of language that is already included in the version of the legislation reported in the House of Representatives (H.R. 6072). “Section 165 of the House bill prevents any fiscal 2019 FTA funding from being used to procure any rail or transit asset from an entity owned, directed or subsidized by a country that is not spelled out by name in the section but is clearly the People’s Republic of China. The Senate prohibition only applies to rolling stock (rail cars and buses), not any other kind of procurement.”
Eno has linked every budget document, bill, amendment, hearing, and debate related to the American federal transportation and infrastructure budget for fiscal year 2019 linked to its FY19 reference page at www.enotrans.org/fy19.


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