China can ‘very easily wipe out’ US railroad system, Rep. Garamendi warns

Editors note: Kudos to Representative John Garamendi (D-CA) on this issue.

Rep. John Garamendi, D-Calif., said the U.S. has another big problem on its hands when it comes to China: control of the rail system.


[Julia Limitone | May 17, 2019 | FoxBusiness]

“The Chinese rail company CRRC is establishing itself in America. It’s already wiped out the Australian rail industry. They could very easily do it in America,” he told FOX Business’ Maria Bartiromo on Friday.

The Chinese state-owned corporation is also the world’s top passenger train maker,  has very heavy subsidies to do competitive pricing, “way, way below any other price,” and is going to “take over the market” if the U.S. doesn’t act fast, Garamendi added.

U.S. lawmakers during a hearing on Thursday examined the threats surfaced by the rail manufacturer.

“What we intend to do is say if a company has extraordinary subsidies as the CRRC they cannot have any contract that has federal money in it,” he said. “It’s a big issue with China. They could easily wipe out the domestic rail industry in America these are transit cars heavy rail cars and the like.”

Watch the interview here:


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