Obama Bans Wind-Farm Purchases by Chinese Company
The companies' projects are all located near a U.S. military site in Oregon
James O'Toole CNN Money
September 28, 2012NEW YORK (CNNMoney) -- President Obama vetoed the acquisition of four wind-farm companies in the U.S. by a Chinese-owned firm on Friday, citing national security concerns.
The companies' projects are all located near a U.S. military site in Oregon, the Naval Weapons Systems Training Facility Boardman, the Treasury Department said in a statement.
The firm in question is Ralls Corporation, which is owned by two Chinese nationals and affiliated with a Chinese construction company that makes wind turbines. It acquired the projects earlier this year, but has now been ordered to sell them.
"The President's action demonstrates the Administration's commitment to protecting national security while maintaining the United States' longstanding policy on open investment," the Treasury Department said.
"The President's decision is specific to this transaction and is not a precedent with regard to any other foreign direct investment from China or any other country."
A lawyer for Ralls Corporation did not immediately respond to requests for comment. Ralls had been fighting an earlier order by the government's Committee on Foreign Investment in the United States to vacate and sell the properties, according to court documents filed earlier this month.
Obama's move follows a complaint lodged last week with the World Trade Organization alleging that China has illegally subsidized automotive exports and undercut American suppliers. The White House has attempted to project an image of being "tough on China" in economic matters, filing more trade cases against Beijing than the Bush administration did.