BYD excluded from U.S. federal funding amid crackdown on China
By Will Hall - 20th December 2021
USA / China – A total ban on federal transit funding for manufacturers linked to China came into effect on 20th December. The terms were included in the 2020 National Defense Authorization Act amid cybersecurity concerns and a fear of China gaining dominance in critical industries. Consequently, firms deemed to have links to the Chinese state will be barred from funding from the Federal Transit Administration (FTA) that regularly supports state and local agency with million-dollar electric bus projects.
The new rules target BYD Inc, based in Shenzhen, China. While the firm has Chinese headquarters, it also operates a large production facility in Lancaster, California, which it claims has a production capacity of around 1,500 electric buses per year. Reported in the Washington Post, Frank Girardot, Communications Director at BYD North America, described the firm as a global business with American investors that happens to be headquartered in China, and one that is being unfairly targeted in the US. He said: