US CONGRESS has passed legislation which would prohibit public transport agencies funded by taxpayers from buying goods or services from Chinese controlled companies, even if the production facilities were located in the USA.
The move is part of ongoing trade disputes with China.
This could severely impact plans to buy new subway trains by operators in both Boston and Chicago as they have placed contracts with Chinese firm CRRC, which has set up an EMU production plant in Springfield, Massachusetts to build the trains.
American companies, especially GE Transportation, have previously sold locomotives to Chinese Railways, some of which were built in the USA.
CRRC is currently building 284 subway vehicles for Boston operator MBTA’s Red and Orange ‘T’ lines at the Springfield factory. The first 12 coaches and components for the remaining trains were made at the CRRC factory in Changchun in north-east China.
The order is worth $430.2million with a $136.4m option for 58 more coaches.
Deliveries will begin this year and be complete by the end of 2021.
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