Sany seeks wind-farm hearing against Obama

Ralls Corp, owned by executives of Chinese industrial giant Sany Group Co Ltd, has asked a federal judge in Washington to hear its case against US President Barack Obama's decision to scrap the purchase of four wind-farm projects near a US navy facility in Oregon.

Sany's chairman Liang Wengen [file photo]

But some experts say the chances of Sany winning the case against Obama are slim.

Lawyers for Delaware-based Ralls told US District Judge Amy Berman Jackson at a two-hour hearing on Wednesday that the company's rights were violated by the Sept 28 decision to bar the wind-farm deals due to an unspecified national security risk. The company also argues that it has not been given a chance to address the Obama administration's concerns.

Ralls argued that Obama's move could cost the company at least the $20 million it has spent on design and construction since acquiring the Oregon sites.

"Bringing this to the court is really the last thing we want to do, as we all know going to court is a big deal in any country, either in China or the United States," Wu Jialiang, a Sany deputy general manager and co-owner of Ralls, told China Daily after the hearing.

"Had we been given fair treatment and the opportunity to discuss this decision, we wouldn't have come this far," he said.

Tim Cullen, partner with US law firm Jones Day, who specializes in global trade disputes, said the case is "virtually unprecedented, because Sany and Ralls are challenging both the action of the CFIUS (Committee on Foreign Investment in the United States) and discretion of the president".

He said the government may argue that the judge should not become involved because it is a matter of national security.

The case was "appealing" as it showed strong needs for a review, but the chances for it proceeding still hinged on presidential discretion, Cullen said.

Many legal commentators and academics think the US government has a favorable chance in the case.