House Minority Leader Kevin McCarthy (R-Calif.) blocked a bipartisan attempt to limit Chinese companies from contracting with U.S. transit systems, a move that benefited a Chinese government-backed manufacturer with a plant in his district, 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 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 imperiling 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.