Obama Sued by Chinese Firm for Blocking Wind Farm Deal

Posted October 3rd, 2012 at 6:45 am (UTC-5)
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A Chinese-owned company has sued U.S. President Barack Obama for blocking its bid to build a wind farm near a sensitive American naval site used to test unmanned drones.

China's official Xinhua news agency says the company, Ralls Corp., claims Mr. Obama exceeded his constitutional rights and did not provide evidence as to why the wind farms would have posed a national security risk.

Last week, Obama ordered the company, owned by two Chinese nationals, to stop the project and sell off its four planned wind farms that were to be built in the northwestern state of Oregon.

The move was made following last month's recommendation by a U.S. panel that monitors the national security implications of foreign investments. It was the first time in two decades that a U.S. president has blocked a foreign purchase on such grounds.

The lawsuit by Ralls said President Obama did not provide “any evidence or reasoned explanation” for the decision and that it was not given enough notice or chance to state its case before the move was made.

The complaint says the company is seeking “fair treatment under the law and Constitution.” But analysts say the suit has little chance of success, since the law gives the president broad powers to exercise discretion in national security matters.

A U.S. Treasury spokesperson said the administration believes the lawsuit “has no merit” and that it will “defend the case vigorously.”

The lawsuit comes as President Obama has come under increasing pressure by his political rival Mitt Romney, who accuses the White House of being too soft on China's trade practices.