Chinese Rail Firm Makes Inroads with U.S. Factory and Boston Transit Deal

Article: http://www.nytimes.com/2015/09/04/business/china-railway-crrc-boston-transit.html?ref=international

          China Railway Rolling Stock Corporation (CRRC), China’s largest rail manufacturing company has broken ground on Thursday by building a sixty million dollar plan in Springfield, Massachusetts which will be assembling new cars for Boston’s subway system. This plant will be hiring up to 150 people being part of a $566 million contract that CRRC won last year. The contract states that CRRC will be providing 284 cars for the Boston Transit system’s Orange and Red Lines. One of the reasons that this was possible because it received backing from local authorities; this was because the provisions included the rail cars being assembled in Massachusetts plant.  

          I believe that this is a great opportunity for both the CRRC and the locals of the state of Massachusetts. This will decrease the unemployment rate within the state as well as improve living standards. This is another example of globalization, CRRC a state owned corporation operating outside China and creating jobs within the U.S. This will also highly reduce the production cost; being that the cars are assembled within the state it requires minimal transportation. Furthermore, this opens doors for CRRC, they will have potential to beachhead to win more contracts in the U.S., it also part of the Chinese government’s policy to encourage technology and infrastructure companies to export their skills and seek foreign investments.