China Will Sue Over Blocked US Deal

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, which is owned by two Chinese nationals, was installing wind turbines close to the training site in Oregon, which, according to the facility’s web site, is used to test unmanned drones – a highly sensitive and prized U.S. technology.

Mr Obama signed the order blocking the deal last week. It is the first foreign investment to be blocked in the US for 22 years. China’s state-run news agency Xinhua said “China-bashing” in order “to woo some blue-collar voters” was the reason for the decision.

In its suit, made public on Tuesday, Ralls Corp alleges Obama exceeded his power by dictating the terms of the sale, by allowing the government to inspect all aspects of its operations, and by not treating the firm equally as required by law.

The lawsuit comes in the final weeks of the U.S. presidential campaign, during which Obama’s Republican rival, Mitt Romney, has accused the president of not pushing back against China’s trade and investment practices.

Its chances of winning the suit are slim given the president’s broad authority on national security matters and the fact that courts do not often second guess the executive branch on security issues, experts say.