Donald Trump ally Kevin McCarthy blocked bipartisan bid to limit China’s role in US transit, shielding Chinese manufacturer BYD Motors
- Intervention is striking at a time when Washington is seeking to curb Beijing’s access to US markets
- BYD Motors has a plant in McCarthy’s California district, and company president Stella Li is a contributor to his campaign
US House Minority Leader Kevin McCarthy blocked a bipartisan attempt to limit Chinese companies from contracting with US transit systems, a move that benefited a Chinese government-backed manufacturer with a plant in his district in California, according to multiple people familiar with the matter.
His behind-the-scenes intervention came as Congress was trying this year to craft a spending compromise to avert another government shutdown. McCarthy, a Republican, pressed lawmakers to strip out language that could have prevented the company in his district, BYD Motors, from winning federal contracts, and they relented because they feared imperilling the bill.
BYD Motors is a division of BYD Co, a giant Chinese manufacturer. Among other things, it makes electric buses that are often used by local governments. Stella Li, BYD Motors president, is a campaign contributor to McCarthy, and the lawmaker spoke at a ribbon cutting for BYD’s California plant in 2017.
Lawmakers frequently take a stance on legislation that could affect campaign contributors or hometown companies.
But McCarthy’s intervention was striking because the close ally of US President Donald Trump sought to protect Chinese interests at a time when Trump and many lawmakers on Capitol Hill are attempting to curb Beijing’s access to US markets, particularly in industries deemed vital to national security.
Last week, Trump put Chinese telecoms giant Huawei on a trade blacklist that severely restricts its access to US technology. The action leaves about 90 days for companies to do some business with Huawei.