S.1711 - Safeguarding Transit Operations to Prohibit China Act; STOP China Act (119th Congress)
Summary
S.1711, the STOP China Act, aims to address national security risks by prohibiting the use of federal funds for procuring certain vehicles and vehicle technologies produced or provided by entities based in countries of concern, primarily China. The bill amends Section 5323(u) of Title 49, United States Code, to define covered entities, covered funding, and covered vehicles. It directs the United States Trade Representative to create and maintain a list of covered entities subject to these prohibitions.
The Act includes exceptions for procurement related to vehicle inspection, investigation, safety research, development, or testing. It also contains severability clauses to ensure that if any provision is deemed unconstitutional, the remainder of the Act remains in effect.
This legislation reflects concerns about China's industrial policies, market dominance, and potential security risks associated with the adoption of Chinese-developed technologies in the United States.
Expected Effects
The STOP China Act will likely restrict the procurement of certain vehicles and related technologies from entities based in countries like China using federal funds. This could lead to a shift in supply chains for transit operations, potentially favoring domestic or non-Chinese international manufacturers.
It may also increase the cost of certain transit projects if alternative suppliers are more expensive. The Act could also spur innovation and investment in the US vehicle manufacturing sector as companies seek to fill the gap left by restricted foreign entities.
Potential Benefits
- Enhanced National Security: Reduces reliance on potentially compromised foreign technologies in critical infrastructure.
- Protection of Domestic Industries: Supports American vehicle manufacturers and technology companies by limiting subsidized foreign competition.
- Reduced Dependence on China: Addresses concerns about the PRC's market dominance and military-civil fusion strategy.
- Strengthened Supply Chains: Encourages the development of more secure and resilient domestic supply chains for vehicle manufacturing.
- Fair Competition: Aims to level the playing field by preventing the use of US taxpayer dollars to fund PRC-subsidized companies.
Potential Disadvantages
- Increased Costs: Restricting access to potentially lower-cost foreign suppliers could increase the expenses of transit projects.
- Delayed Project Timelines: Finding alternative suppliers and adjusting procurement processes may lead to delays in infrastructure development.
- Limited Innovation: Reduced competition could stifle innovation if domestic companies face less pressure to improve their products and technologies.
- Trade Retaliation: The Act could provoke retaliatory measures from China, impacting other sectors of the US economy.
- Reduced Choice: Transit agencies may have fewer options when selecting vehicles and technologies, potentially limiting their ability to meet specific needs.
Constitutional Alignment
The STOP China Act appears to align with the constitutional power of Congress to regulate commerce with foreign nations (Article I, Section 8, Clause 3). It also relates to the national defense, which is a core responsibility of the federal government.
The Act's provisions regarding prohibitions and restrictions on procurement do not appear to infringe upon individual liberties or rights protected by the Bill of Rights. The Act's focus on national security and economic competitiveness falls within the scope of legitimate governmental interests.
However, the implementation of the Act should be carefully monitored to ensure that it does not unduly burden interstate commerce or discriminate against specific entities without due process.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).