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Court allows Sany to challenge CFIUS for rights

CCTV.com

07-20-2014 06:56 BJT

Chinese machinery manufacturer Sany Heavy Industry has won a lawsuit against US President Barack Obama on its wind farm projects in Oregon. Michelle Xing gives us the latest from Sany’s press conference earlier today.

The company and industry analysts say that the US court ruling signals an early victory for the company and sets a precedent for other Chinese companies hoping to enter the US market.

The company and industry analysts say that the US court ruling signals an early victory for the company and sets a precedent for other Chinese companies hoping to enter the US market.

A US federal appeals court in Washington has ruled that Ralls Corporation, own by machinery giant Sany, must be allowed to challenge evidence which U.S president Barack Obama drew on to stop its operations connected to wind-farm projects in Oregon.

The company and industry analysts say that the US court ruling signals an early victory for the company and sets a precedent for other Chinese companies hoping to enter the US market.

"I think this ruling is reassuring for many foreign companies wanting to invest in the US. Now there is a way to pursue fairness and justice. Before this, rulings by the CFIUS couldn’t be overridden by the law. This court ruling shows that companies are entitled to challenge CFIUS, which will make their black box operation more transparent," Xiang Wenbo, Chairman of Sany Heavy Industry said.

The appeals judges who had overturned a lower court, said Ralls’ constitutional rights were violated because it never had access to information the government used to stop its operations and was not able to address its specific concerns.

"A unanimous ruling by the three judge panel said that the presidential order deprived Ralls of significant property interest. The lack of process constitutes a clear constitutional violation. This ruling means that the order by President Obama is no longer valid," Xia Tingkang, Partner Morris, Manning & Martin, LLP said.

Ralls Corporation acquired four wind farm projects near a US naval facility in Oregon in early 2012. Obama then signed an order to block the deal, citing national security concerns.

Chinese investors were subject to double the number of reviews by the Committee on Foreign Investment in the United States, or CFIUS, in 2012 compared with the year before, overtaking the United Kingdom as foreign buyers of US companies that come under the most scrutiny.

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