China Firm Sues Obama Over Blocked US Wind Farm Deal

by
staff
A Chinese-owned firm in the US is suing President Barack Obama after he blocked a wind farm deal on national security grounds.

The Chinese suit says the US president acted in an unlawful manner

A Chinese-owned firm in the US is suing President Barack Obama after he blocked a wind farm deal on national security grounds.

Ralls Corp, a private firm, acquired four wind farm projects near a US naval facility in Oregon earlier this year.

Mr Obama signed the order blocking the deal last week. The lawsuit alleges the US government overstepped its authority.

It is the first foreign investment to be blocked in the US for 22 years.

The move forced Ralls Corp to divest its stake in the projects, which were located near restricted airspace used by the Naval Weapons Systems Training Facility.

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.

The military has said it uses the Oregon base to test unmanned drones and other equipment for electronic warfare. The aircraft fly as low as 200ft (60m) at speeds of as much as 300mph (500km/h).

The block on the wind farms comes just weeks ahead of November's presidential election.

China's trade advantage over the US has become a focus of Mr Obama's battle for re-election against Republican contender Mitt Romney.

Last month, the Obama administration filed a complaint with the World Trade Organization against Chinese subsidies for its car industry.