Republicans Spur Investigation into China-Owned Corporation Given Billions in U.S. Tax Dollars to Build Rail Cars

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The China Railway Rolling Stock Corporation (CRRC) is now being investigated by the Department of Transportation (DOT) Inspector General (IG) after the China-owned company has raked in billions in American taxpayer money, producing rail cars for a number of cities in the United States.

The CRRC, owned by the government of China, was initially awarded a $138 million contract with the city of Philadelphia, Pennsylvania, to build at least 45 new rail cars.

Already, the contract has been marked with delays and production issues like “‘repeated failures of water-tightness tests,’ faulty interior panels, wiring issues, repeated brake test failures, and ‘unsafe emergency exit windows,’” according to the Philadelphia Inquirer.

Last year, Reps. Sam Graves (R-MO), Rodney Davis (R-IL), and Rick Crawford (R-AR) asked the DOT IG to investigate whether CRRC was adhering to Buy American rules, which require the corporation to source at least 70 percent of rail car components from manufacturers in the U.S.