Consumer Energy Report is now Energy Trends Insider -- Read More »

By CER News Desk on Oct 3, 2012 with 4 responses

‘National Security’: Obama Blocks Chinese Wind Farm Ownership in Oregon

Chinese-owned company in the midst of a battle with the Obama Administration over issues of  trade and national security

President Barack Obama has blocked a Chinese company from owning interests in four northern Oregon wind farms, citing national security risks given their close proximity to a United States military base where unmanned drones and electronic-warfare planes are tested.

The decision marks the first time in more than 22 years that an American president has vetoed a foreign business deal in the interest of American security. While every American president has the power to void foreign transactions involving United States-based businesses under the Defense Production Act, the ability has not been exercised since President George H.W. Bush preempted the sale of Mamco Manufacturing to a Chinese-owned agency in 1990. (See more: Wind Power Layoffs Abound as Industry Threatened by Tax Credit Expiration)

Owned by Chinese nationals, Rall Corp. purchased interest in the wind farms, located only miles away from the Naval Weapons Systems Training Facility in Boardman, Oregon, earlier this year. With this turn of events, the company will have to divest its interests in the wind farms immediately.

The company has already filed suit against the Obama Administration, alleging that the president had “acted in an unlawful and unauthorized manner”.

“By failing to provide Ralls with sufficient notice and opportunity to be heard prior to prohibiting its acquisition of the wind farms and imposing extraordinary restrictions on the use and enjoyment of its property interests, CFIUS and the president have unconstitutionally deprived Ralls of its property absent due process,” the complaint reads.

The news of President Obama’s decision comes during an election campaign that has seen his opponents accuse him of being soft with China, helping the president to combat such claims, but the call is likely to further irritate already tense economic relations with China. With this risk obviously in mind, the Treasury Department statement attempted to play down the political gravity of the decision.

“The President’s action demonstrates the Administration’s commitment to protecting national security while maintaining the United States’ longstanding policy on open investment,” said a statement from the U.S. Treasury Department. (See more: Why China’s Purchase of a Canadian Oil Company is NOT Harmful to U.S. National Security)

“The President’s decision is specific to this transaction and is not a precedent with regard to any other foreign direct investment from China or any other country,” the statement reassured.

  1. By notKit P on October 3, 2012 at 1:20 pm

    WHISKY TANGO FOXTROT over!

     

    That navy lingo for hearing there is a navy base in Boardman Oregon.  A very secret one apparently! 

     

    In any case, it is good to see that Obama is getting tough with China on national security issue.  Considering the huge number of wind farms already in that area, I fail to see how a company from China who want to invest in the US is a security issue.   

    [link]      
  2. By mac on October 12, 2012 at 12:48 am

    When the Chinese allow us to buy and own their windmill farms, then perhaps we can “trade” OUR Chinese windmill farm investments  for the eastern Oregon wind farms.

    What is the point of this pro qyud pro ?  Obviously. SOMEONE  has the advantage in these exchanges.  And it is the Chinese..

    “The debtor is servant to the lender.”

    As a matter of fact, China owns us…….

    Because we have sent our manufacturing base to China, so that inexpensive Chinese labor can manufacture goods for us.  We are now borrowing money at horrendous interest from the Chinese so that we can continue to import “cheap” Chinese goods. The same goes for oil imports)  We import the oil. but our money (wealth) flows overseas.

    Then, the Chinese (and others, of course) proceed to buy up American businesses, and real estate with the trade imbalance profits.

    Very good, you dumb f..cks.

    Glad to see the Obama Administration is finally beginning to see this.

    There is the Right  Way, the Wrong Way, and the Navy Way.

    And then there is Pure Stupidity, which is the official U.S. Government position.

     

     

     

    But, why would we want to do that ?

     

    [link]      
  3. By mac on October 12, 2012 at 1:33 am

    There are any number of caveats and qualifiers  to the trade imbalances issue.   It ‘s obvious that we are mostly borrowing from the Chinese because of our legacy social program obligations , and not solely to correct trade imbalances. ..

                                           

     This problem is endemic to the Western “Socialist Democracies”, the U.S. included whose politicians say:

    “By all means, let us borrow our way to prosperity, and by all means re-elect the politicians that have sold their souls to the Devil for votes by promising endless government benefits beyond all realistic expectations of government revenue.”

     

    [link]      
  4. By mac on October 12, 2012 at 2:05 am

    The Chinese take their profits from U.S./China trade imbalance to buy T-Bills (debt instruments) from the U.S. Govt.  They then take the interest from these bonds to buy U.S. businesses, real estate, etc. ……

     

    I suspect that this is not too difficult to understand…. ……..

    In truth, what is actually happening is  painfully obvious.

    So, when your next door neighbor says he is making his living importing Chinese goods, then you need to call the cops immediately. 

    The police will no doubt hurry to your side in a Japanese vehicle with drawn revolvers imported from China.

    [link]      
Register or log in now to save your comments and get priority moderation!