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... supports Professor William Snyder's sections of National Security Law, Counterterrorism Law, and Prosecuting Terrorists at the Syracuse University College of Law.

President Obama Bans China-Owned Company’s Wind Turbines on “National Security Grounds”

Oct 2nd, 2012 Current Affairs, defenses

Today Bloomberg Business Week reported that the Ralls Corporation is challenging the constitutionality of President Obama’s decision to prohibit Ralls from placing wind turbines on land in Oregon that it purchased earlier this year. The article states that Ralls, a Delaware-based corporation owned by the China-based Sany Group Company, filed suit on September 12 against the Committee on Foreign Investment in the United States (CFIUS). The complaint reads:

The physical and regulatory takings of Ralls’s property interests constitute unconstitutional takings in violation of the U.S. Constitution and deprive Ralls of its property interests absent due process…

Bloomberg reports that the amended complaint claims President Obama acted beyond the scope of his presidential powers and that the alleged takings also “violate Ralls’s constitutional right to equal protection.”

According to Bloomberg, the area surrounding the property in question is used by the U.S. Navy for training on bombing, electronic combat maneuvers, and drone development. The article goes on to say that this is the first time a president has blocked a transaction on “national security grounds” in twenty-two years.

Yesterday, the Wall Street Journal reported that a Treasury Department spokeswoman commented that President Obama’s decision cannot be challenged in court because under the CFIUS he enjoys the power to scrutinize acquisitions of U.S. companies or interests by foreign-owned firms when national security risks are involved.


You can read the initial complaint here.

You can read the full Bloomberg article, “Chinese-Owned Company Sues Obama Over Wind Farm Project,” here.

You can read the full Wall Street Journal article, “Treasury: Obama’s China Decision Can’t Be Reviewed,” here.

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