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

  • Security Industry Association Announces the 2026 Security Megatrends

    The Security Industry Association (SIA) has identified and forecasted the 2026 Security Megatrends, which form the basis of SIA’s signature annual Security Megatrends report defining the top 10 factors influencing both near- and long-term change in the global security industry. Read Now

  • The Future of Access Control: Cloud-Based Solutions for Safer Workplaces

    Access controls have revolutionized the way we protect our people, assets and operations. Gone are the days of cumbersome keychains and the security liabilities they introduced, but it’s a mistake to think that their evolution has reached its peak. Read Now

  • A Look at AI

    Large language models (LLMs) have taken the world by storm. Within months of OpenAI launching its AI chatbot, ChatGPT, it amassed more than 100 million users, making it the fastest-growing consumer application in history. Read Now

  • First, Do No Harm: Responsibly Applying Artificial Intelligence

    It was 2022 when early LLMs (Large Language Models) brought the term “AI” into mainstream public consciousness and since then, we’ve seen security corporations and integrators attempt to develop their solutions and sales pitches around the biggest tech boom of the 21st century. However, not all “artificial intelligence” is equally suitable for security applications, and it’s essential for end users to remain vigilant in understanding how their solutions are utilizing AI. Read Now

  • Improve Incident Response With Intelligent Cloud Video Surveillance

    Video surveillance is a vital part of business security, helping institutions protect against everyday threats for increased employee, customer, and student safety. However, many outdated surveillance solutions lack the ability to offer immediate insights into critical incidents. This slows down investigations and limits how effectively teams can respond to situations, creating greater risks for the organization. Read Now

New Products

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.

  • Luma x20

    Luma x20

    Snap One has announced its popular Luma x20 family of surveillance products now offers even greater security and privacy for home and business owners across the globe by giving them full control over integrators’ system access to view live and recorded video. According to Snap One Product Manager Derek Webb, the new “customer handoff” feature provides enhanced user control after initial installation, allowing the owners to have total privacy while also making it easy to reinstate integrator access when maintenance or assistance is required. This new feature is now available to all Luma x20 users globally. “The Luma x20 family of surveillance solutions provides excellent image and audio capture, and with the new customer handoff feature, it now offers absolute privacy for camera feeds and recordings,” Webb said. “With notifications and integrator access controlled through the powerful OvrC remote system management platform, it’s easy for integrators to give their clients full control of their footage and then to get temporary access from the client for any troubleshooting needs.”

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.