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Chinese manufacturer successfully sues US

CCTV.com

07-17-2014 13:50 BJT

A Chinese manufacturing company has won a case against the U-S government, after its purchase of an American company - was blocked. The company, Sany, then took the Committee on Foreign Investment in the United States to court and won.

It all began two years ago, when the RALLS Corporation bought four windfarms in the U.S. state of Oregon.

RALLS is the American subsidiary of SANY, a Chinese producer of heavy machinery-including wind turbines.

Both its owners are Chinese citizens. The windfarms were close to a U.S. Naval installation and near a zone of restricted airspace.

After a review, the Committee on Foreign Investment in the U.S. - or CFIUS - decided that there could be a threat to national security. U.S. President Barack Obama ordered SANY to divest itself of these companies. SANY’s response We’re suing you.

The case wound up in the second highest court in the United States: The U.S. Court of Appeals.
On Tuesday, the court ruled in favor of SANY, saying the company did not get enough information from the committee to be able to address its concerns.The court also ruled that the SANY will now get that opportunity.

Ting Tang Xia, attorney for RALLS Corporation and its parent company, Sany tells CCTV, quote: "This is transformative and unprecedented because it confirms the rule of law and the U.S. Constitution. No agency can act above our U.S. Constitution." Clay Lowery is a former member of CFIUS.

SANY’s attorney says could open the door for other companies who’ve been turned away by the CFIUS process and give them access to more unclassified information shaping the US government’s position. But Sany is one of only two company acquisitions blocked by presidential order, so it’s case before the court - was stronger. Many companies have simply given up.

According to the US government, Chinese investors had the highest percentage of national security challenges for a calendar year in 2012. Meantime, The U.S. Government says it is reviewing the decision. If it decides to appeal, it would go to the U.S. Supreme Court.

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