Barack Obama blocked privately owned Chinese firms constructing wind turbines in Oregon over security. The company said it would file a case against this issue in court. One of the rarest activities announced by Barack for a second time against republican nominee Mitt Romney, who claims Obama being soft on China.
Ralls Corporation has been building the wind turbine by Chinese Sany Group, has 4 projects in hand that are going to be installed at the within or inside the restricted area at Navy military site, according to Obama government.
Explaining the issue, Obama said there is enough evidence that Ralls Corp and Sany Group executives might take action that can hamper the national security in US. Ralls Corporation has already filed a case against the Foreign Investment Committee in US, for blocking the operations and constructions at its projects that are halfway through.
Obama announced his decision on Friday, whereas company believes court would justify its recommendation under the Constitution and law. Sany Heavy Industry Corporation is China’s biggest building equipment maker and Sany Group is one of its subsidiaries. Liang Wengen, chairman and controlling shareholder at Sany is one of the richest men in China has fallen from number 1 in last year.
Though there are dozens of foreign investment deal issues over national security concerns, Barack Obama is rarely taken as an issue as a formal order as firms usually close their deals or divest benefits when the board sees problem with their transaction.
Gorge H W Bush blocked China’s Aero Tech Company due to national security grounds in 1990 during his rule. He had blocked the company from acquiring United States manufacturing firm. Clay Lowery, served as assistant secretary at Treasury from 2005-2009, is now working with Rock Creek Global, said it is the first big deal since 1990 that the US president has either blocked a divested or a new transaction that is occurring.
Obama’s order gives companies three months to divest all their interests in the ongoing projects, but Ralls Corporation is still evaluating the order and formed no plan to change its activities. According to them, only one out of the 4 wind farms was located in the air space at a naval weapons system. They haven’t come up with any plans that would require them to only divest profits in that project. Company claims it is not just China’s wind farms that are located in that area, but also other two foreign farms- one German company and another Danish company.