Wed, October 03, 2012
China > China & World

Chinese-owned firm sues Obama over wind farm project

2012-10-02 21:48:23 GMT2012-10-03 05:48:23(Beijing Time)  Xinhua English

A Chinese-owned company has sued U.S. President Barack Obama for blocking its wind farm project purchase deal, claiming that the president's order exceeded its constitutional rights and failed to provide detailed evidence.

In an amended complaint filed on Monday in the U.S. District Court in Washington, Ralls Corp., a company owned by Chinese nationals, said Obama acted in "an unlawful and unauthorized manner" in issuing the order without providing "any evidence or reasoned explanation" for his decision to use a national defense law in prohibiting the acquisition and ordering the company to divest the four wind farms.

Ralls also contended that Obama and the Committee on Foreign Investment in the United States (CFIUS) failed to give the firm " sufficient notice and opportunity to be heard prior to prohibiting its acquisition of the wind farms and imposing extraordinary restrictions on the use and enjoyment of its property interests."

By filing the complaint, "Ralls continues to show its profound faith in transparency and due process, and seeks only fair treatment under the law and the Constitution," said Tim Xia, counsel for Ralls Corp., in a statement.

U.S. President Barack Obama on Friday issued a presidential order to prevent Ralls Corp., from owning four wind farms in Boardman, Oregon, citing national security risks for their locations near the Naval Weapons Systems Training Facility.

Ralls Corp. is owned by two executives of Sany Group, China's largest machinery manufacturer.

It was the first time in 22 years that a U.S. president has blocked such a foreign business deal. During this election year when the U.S. economy is mired in tepid growth and high unemployment rate, both Democrats and Republicans are using China- bashing tactic to woo some blue-collar voters.

As the campaigns intensify, Obama has been facing mounting pressure from his Republican rival Mitt Romney who blamed him for not being tough enough on China.

The Chinese government has repeatedly urged the United States to abide by its commitment against protectionism and maintain a free, open and just international trade environment.

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