{"id":1685,"date":"2018-06-13T17:26:29","date_gmt":"2018-06-13T17:26:29","guid":{"rendered":"http:\/\/www.blackopspartners.com\/?p=1685"},"modified":"2018-06-13T17:26:29","modified_gmt":"2018-06-13T17:26:29","slug":"china-pushing-to-control-us-rail-industry","status":"publish","type":"post","link":"https:\/\/blackopspartners.com\/china-pushing-to-control-us-rail-industry\/","title":{"rendered":"China Pushing to Control US Rail Industry"},"content":{"rendered":"
The Chinese Communist Party (CCP) is taking steps to control the U.S. rail industry, leveraging state funding to undercut competitors, force private companies out of business, and then dominate the market.<\/p>\n
The issue doesn\u2019t end with the debate about the free market or foreign actions that disrupt private competition in business. Control of the U.S. rail system also gives the CCP a network of sensors across the United States, and control of a key tool used for domestic transport by the U.S. military.<\/p>\n
According to Erik Olson, vice president of the Rail Security Alliance, the main company behind this push is CRRC, a state-owned Chinese company. A report from Oxford Economics, backed by the Rail Security Alliance, found that CRRC\u2019s actions could eliminate 65,000 jobs from the United States if China takes over U.S. freight rail production. If allowed to proceed, it could also reduce the U.S. GDP by close to $6.5 billion.<\/p>\n
\u201cWe feel they\u2019re very transparent in their interests in rail. It\u2019s obviously part of their 2025 Plan,\u201d Olson said, referring to the Chinese regime\u2019s \u201cMade in China 2025<\/a>\u201d plan to become a manufacturing superpower by replacing foreign competitors in global high-tech markets.<\/p>\n As part of its 2025 Plan, the CCP has identified 10 technology sectors to overtake which includes, among others, advanced rail equipment. To achieve this goal, the Chinese regime is directing state-owned and private firms to invest in and acquire foreign companies, and to acquire or steal technological innovations.<\/p>\n With CRRC, it is quickly advancing to dominate the global rail industry.<\/p>\n In Australia, the CCP has already demonstrated its tactics. According to Olson, CRRC went to Australia nine years ago. Since the Chinese state-owned company didn\u2019t need to make a profit, it was able to make bids that no competitors could match. Of the three primary Australian rail companies, CRRC eventually acquired one, and the two others went out of business.<\/p>\n \u201cWe don\u2019t want to see that here in the United States because we have a healthy, vibrant freight industry,\u201d Olson said.<\/p>\n Already, however, CRRC is making inroads in the United States; it has won bids in Boston, Philadelphia, Los Angeles, and Chicago.<\/p>\n \u201cThe Boston one is particularly interesting because the second-lowest bid was from Bombardier, which was around a billion dollars, and CRRC came in at 569 million,\u201d Olson said.<\/p>\n \u201cIt\u2019s almost half the bid from Bombardier,\u201d he said. \u201cThey don\u2019t have to make money, so they can do whatever they want.\u201d<\/p>\n