China Firm Sues Obama Over Blocked Wind Farm Deal

Last Friday, President Obama blocked investment by the Chinese firm Ralls in a wind farm in Oregon located near a Naval facility. This was the first such presidential order barring foreign investment since 1990. From Reuters:

The rare presidential order to divest interests in the wind farms comes as Obama campaigns for a second term against Republican Mitt Romney, who has accused him of being soft on China.

Ralls Corp, which had been installing wind turbine generators made in China by Sany Group, has four wind farm projects that are within or in the vicinity of restricted air space at a naval weapons systems training facility, according to the Obama administration.

“There is credible evidence that leads me to believe” that Ralls Corp, Sany Group and the two Sany Group executives who own Ralls “might take action that threatens to impair the national security of the United States,” Obama said in issuing his decision.

In response, Ralls has filed suit against Obama, claiming the U.S. government has “overstepped its authority.” From BBC:

Ralls Corp’s complaint, filed on Monday, alleged that the US president had “acted in an unlawful and unauthorised manner”.

The firm, owned by two Chinese nationals, said in its suit that Mr Obama failed to adhere to the law to treat Ralls Corp on equal terms. The court documents were made public on Tuesday.

Issuing the order last week, the White House said: “There is credible evidence that leads me to believe that Ralls Corporation… might take action that threatens to impair the national security of the United States.”

However, the company said in its suit that Mr Obama had not produced evidence to support that.

October 3, 2012 2:19 PM
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