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Trump Trade War With China Sparks Chicago Mayor's China Trip

CHICAGO (CBS)—Mayor Rahm Emanuel boarded a plane for a weeklong trip to China today to try to protect Chicago jobs and a major CTA deal from the expanding U.S.-China trade war.

While in China, Emanuel will visit the Chinese company that has a $1.3 billion contract to build CTA train cars at a factory in the Hegewisch neighborhood of Chicago.

Rahm Emanuel
The mayor spoke at a press conference in Chinatown Monday before heading to O'Hare for his flight to China.

CRRC Sifang America built a new $100 million factory at 135th and Torrence, where it will assemble more than 800 new 7000-series rail cars for the CTA. The parts for the cars will be made elsewhere, including in China.

Beginning in 2019, the factory is expected to begin assembling the first 400 rail cars, and the mayor's office is worried the CTA deal ultimately could be affected by the trade war.

A 25 percent tariff on $34 billion of Chinese goods was imposed by the Trump administration last week, and China responded with retaliatory tariffs on U.S. goods.

Emanuel's trip overseas sparked the question of whether a mayor has much impact in a trade war between two world superpowers.

Reporting on Emanuel's trip, CBS 2's Derrick Blakley was at a groundbreaking ceremony Monday with the mayor for a project to realign Wentworth Avenue in Chinatown.

At the press conference, Emanuel spoke of his concern over President Trump's 25 percent tariff.

"No one knows where this trade war and tariff war by President Trump—where it falls," Emanuel said. "We want to make sure (the CTA railcar facility) does not become a bargaining chip or a victim of the new trade war."

Emanuel is equally concerned about O'Hare. The airport handles almost a third of all air cargo to the U.S. from China, Blakley reports. Tariffs could cut Chinese shipments to the U.S., reducing airport revenues and economic activity.

"Thousands of jobs depend on it," Emanuel said.

During his time in Asia, the mayor is expected to announce several agreements, including the city's move to double the size of the Bank of China's Chicago office to 65 staffers, Japanese company Komatsu's plan to move 350 jobs from suburban Rolling Meadows to the city and an economic partnership between the Japanese government and Chicago.

"I think president trump is going about this all the wrong way," Emanuel said. "I'm gonna make sure they know they have a willing partner—we'll compete where we have to compete, cooperate where we can cooperate."

 

 

 

 

 

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