US Congress might ban buses by Chinese company BYD. US Congress might ban buses by Chinese company BYD. (AP photo)

TAIPEI (Taiwan News) – Members of the United States House of Representatives and the Senate have reached a consensus about a ban on the use of federal funds for the purchase of Chinese buses and railcars, the Wall Street Journal reported Tuesday (December 10).

The restriction forms part of the National Defense Authorization Act (NDAA), but would not work retroactively against agreements already signed, according to the Central News Agency.

The two Chinese companies most likely to be hit by the measure would be state-owned railcar maker CRRC Corporation and BYD Motors, a manufacturer of electric cars and buses which operates a plant in California.

While realizing the NDAA ban might lead to a loss of jobs inside the country, U.S. members of Congress reportedly said that national security would have to come first. There have been concerns that the Chinese-made technology could lead to Chinese intelligence spying on passengers and taking control of traffic at intersections through electronic means.