[Congressional Record Volume 160, Number 122 (Thursday, July 31, 2014)]
[Senate]
[Pages S5299-S5300]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            CHINESE DRYWALL

  Ms. LANDRIEU. Madam President, I wish to join my colleague, Senator 
Nelson, in expressing frustration over the Chinese Government's failure 
to remedy the damages to homeowners, businesses, and contractors caused 
by Chinese drywall companies.
  Beginning some 10 years ago, drywall manufactured by Chinese 
companies was imported to the United States. A significant amount of 
the imported Chinese drywall proved to be defective. In my State, this 
drywall was mostly used in homes and businesses that had suffered 
substantial damages from Hurricanes Katrina and Rita. In total, there 
were thousands of cases in the gulf coast area.
  The drywall emitted sulfur gases, which caused physical damage to the 
homes and significant health problems for the residents. The sulfur gas 
severely corroded metals found in plumbing, electrical wiring, air-
conditioning systems, and household appliances. Health issues included 
skin irritation, persistent cough, bloody noses, and asthma attacks. 
For many families who lived through these hurricanes, having to 
completely rebuild a home again was yet another obstacle to their 
recovery.
  I have maintained that the Consumer Product Safety Commission should 
have served as the first line of defense in preventing this inferior 
product from entering the U.S. market. Nevertheless, manufacturers, no 
matter where they are located, have a responsibility to consumers 
harmed by defective products.
  The homeowners sought relief in court, and most of the cases were 
consolidated in the Eastern District of

[[Page S5300]]

Louisiana, where the court identified two companies as the primary 
perpetrators; Knauf Entities and Taishan Entities. Knauf Entities 
participated in litigation and paid damages. Unfortunately, Taishan 
Entities has refused to appear to defend lawsuits in U.S. courts and 
will not negotiate with those harmed by the defective sheetrock.
  The Honorable Judge Eldon Fallon of the Eastern District of Louisiana 
issued an order holding Taishan in both civil and criminal contempt on 
July 17, 2014. The order also enjoined Taishan and its affiliates from 
conducting business in the United States until it participates in the 
judicial process. Although this is a win for Taishan's victims, they 
deserve and require tangible compensation for their losses.
  The Chinese Government has shown no willingness to hold this company 
accountable. Meanwhile, thousands of families are still waiting for 
justice. We cannot allow Taishan Entities to hide from the United 
States judicial process and further injure those who have suffered.
  I urge this body to call on Taishan Entities to do the right thing 
and respect international law. Additionally, we should continue to 
pressure the Chinese Government to hold companies within its borders 
accountable for their actions.

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