The Chinese-owned company Ralls Corp. yesterday announced its intentions to sue Barack Obama for his decision, last week, to block the company’s purchase of four small wind projects in Oregon. Obama made the ban based on national security reasons due to the fact that the wind turbines were situated close to restricted air space used by a local navy weapons training facility.
Ralls Corp. is a Delaware-based firm which is privately owned by two Chinese nationals, who are also executives for the Chinese company, Sany Group, who build wind turbines. Ralls have accused Obama of overstepping his authority as president.
The complaint read: “By failing to provide Ralls with sufficient notice and opportunity to be heard prior to prohibiting its acquisition of the windfarms and imposing extraordinary restrictions on the use and enjoyment of its property interests, CFIUS and the president have unconstitutionally deprived Ralls of its property absent due process.”
Obama made the decision during a time when Mitt Romney has been accusing him of failing to stand up for US businesses who are receiving extreme competition from Chinese firms.
It is the first time in 22 years that a president has blocked a foreign investment due to fears for national security.
By. James Burgess of Oilprice.com