chicago subway

Lawmakers Warn Cities to Stop Contracting Chinese Companies To Build Transit Systems

Despite concerns about Chinese manufacturers having access to U.S. transportation data, cities continue to move ahead with plans to partner with state-owned companies.

Both Republican and Democratic lawmakers are concerned about the continued partnerships between American cities and Chinese companies to build transit systems, including rail cars and buses.

Those anxieties were aired at a Thursday Senate Banking Committee hearing on the threats posed by state-owned and operated transportation services. Two Chinese companies in particular, the railcar manufacturer China Railway Rolling Stock Corporation (CRRC) and bus and electric battery manufacturer Build Your Dreams (BYD), were the focus of much criticism about the potential security threats to transportation system data.

“The potential for an adversarial state actor to monitor the movements of American citizens, hack personal or government-issued devices, and collect intelligence on our military is a major security concern,” Sen. John Cornyn (R-Texas) said at the hearing, according to The Hill.

Last December, Cornyn was at the center of an effort to ban states or cities from using federal funds to buy passenger rail cars or buses from state-owned or controlled manufacturers. While the bill was signed into law as part of the 2020 National Defense Authorization Act, the law will not go into effect for two years, The Hill reported.

“Unfortunately, special interests were able to demand a two-year enforcement delay of some of this legislation’s critical components,” Cornyn said. “I am here today to ask for your help in ensuring this delay does not turn into a window the Chinese Communist Party and its state-controlled companies can further exploit.”

Cybersecurity and national security officials have expressed similar concerns about Huawei, TikTok and other Chinese companies, which are required by a Chinese law to participate in the country’s intelligence work and disclose sensitive data if asked.

However, many cities -- including Los Angeles, Chicago, Boston and Philadelphia -- are moving ahead with plans to buy from CRRC, the world’s largest manufacturer of metro rail cars. New York’s transit authority said in 2018 that the company had won its bid to build new railcars, offering $50 million of its own money.

A similarly low bid allowed CRRC to win the contest to build railcars for Chicago’s transit system. Sen. Sherrod Brown (D-Ohio) said Chinese subsidies give CRRC and BYD an unfair advantage.

“CRRC and BYD are two in a long line of examples of how China cheats its way ... into being a global leader into industry after industry,” Brown said. “Congress still needs to fully assess the risk associated with data of our transportation system being exposed to foreign actors.”

The two-year delay is not in effect for the Washington Metropolitan Area Transit Authority (WMATA), which is banned from accepting bids from CRRC to build its railcars.

 

For its part, CRRC has said that once the railcars are built and delivered to the transit agencies, the company does not have control over the transportation data. “CRRC is very dedicated and very supportive of the fact that there will be security measures, safety measures and transit agencies will want to be satisfied before they accept a car,” chief legal counsel Marina Popovic told The Hill last year.

Cities must be aware of the potential threats posed by Chinese technology and that the low-balling bids are not worth the security challenges, lawmakers said on Thursday.

“Allowing American trains and buses to become Trojan horses for these technologies on American soil is unacceptable,” Cornyn said.

About the Author

Haley Samsel is an Associate Content Editor for the Infrastructure Solutions Group at 1105 Media.

Featured

  • Just as Expected

    GSX produced a wonderful tradeshow earlier this week. Monday was surprisingly strong in the morning, and the afternoon wasn’t bad at all. That’s Monday’s results and asking attendees to travel on Sunday. Just a quick hint, no one wants to give up their weekend to travel and set up an exhibit booth. I’m just saying. Read Now

    • Industry Events
    • GSX
  • NOLA: The Crescent City

    Twenty years later we finds ourselves in New Orleans. Twenty years ago the aftermath of Hurricane Katrina forced exhibitors and attendees to look elsewhere for tradeshow floor space. Read Now

    • Industry Events
    • GSX
  • Nothing Artificial About this Intelligence

    I have been looking forward to this year’s GSX show in New Orleans, the Cresent City, or if you prefer The Big Easy. It seems like quite a while since we’ve been here. Twenty years ago, ASIS, as it was known then was literally washed out of the city by someone known as Katrina. It is a good thing to come back to NOLA. Read Now

  • From Monitors to Mission Control

    Security Operations Centers (SOC) were once defined by rows of static monitors, each displaying a single feed with operators quietly watching for issues. That model has become obsolete. Incidents evolve too quickly, data comes from multiple locations, and decisions must be made in seconds—not minutes. Read Now

  • New Gas Monkey Garage Venue Uses AI-Enhanced Video Technology

    Gas Monkey Garage, the automotive custom shop and entertainment brand founded by Richard Rawlings of Fast N’ Loud TV fame, has opened a vibrant new restaurant and bar in South Dakota, equipped with advanced, AI-enhanced video tech from IDIS Americas. Read Now

New Products

  • HD2055 Modular Barricade

    Delta Scientific’s electric HD2055 modular shallow foundation barricade is tested to ASTM M50/P1 with negative penetration from the vehicle upon impact. With a shallow foundation of only 24 inches, the HD2055 can be installed without worrying about buried power lines and other below grade obstructions. The modular make-up of the barrier also allows you to cover wider roadways by adding additional modules to the system. The HD2055 boasts an Emergency Fast Operation of 1.5 seconds giving the guard ample time to deploy under a high threat situation.

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.