Sany seeks wind-farm hearing against Obama
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E-mail China Daily, November 30, 2012
Clif Burns, a lawyer with Washington firm Bryan Cave LLP who specializes in export controls and economic sanctions, said: "The Exon-Florio amendment specifically exempts presidential decisions such as this from judicial review, so Ralls' lawsuit has virtually no chance of being successful."
He was referring to a federal law enacted in 1988 that provides for scrutiny of foreign investments.
Burns said: "I don't think that Obama's decision to block (the wind-farm deals) will have much effect on future Chinese investment in the US because of the unique security concerns posed by this investment."
But Cullen said the case could have various consequences, one being that the committee on foreign investment may have to adopt more regular procedures and more transparency in dealing with such cases.
Cullen also said China has been a promising source of capital for investment worldwide. Although there have been incidences where investment has stopped, this was only on a small scale, and the US market would eventually get used to Chinese investment.
He compared the trend to the expansion of Japanese investors from the 1980s onwards. "There was a lot of concern over the dramatically increasing Japanese share of the car market, but over a period of time people just get used to the ideas that they would make Hondas and Toyotas and this is perfectly good for the country.
"The aggressive adaptation by China and Chinese enterprises to the rule of law is one of the greatest legal stories of my career," Cullen said.
Ann Lee, a New York University economics professor, said the case is not likely to have an impact on other Chinese investments, especially smaller transactions that do not involve technology or natural resources.
"The case will be a near impossibility to win, since rarely do private interests have the resources or political capital to go against a government which makes all the rules," Lee said.
"But it will be a good way for the Chinese to get experience in working the US legal system, even if they lose."
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