Ralls CEO Issues Response as Lawsuit Against Obama
Ralls Corporation CEO Wu Jialiang remains adamant that his company receive compensation for losses in their investment in a U.S. wind farm.
The second session of its lawsuit against U.S. President Barack Obama and the Committee on Foreign Investment in the United States (CFIUS) is set to be heard in Washington, D.C. on Thursday.
The U.S.-based subsidiary Ralls Corporation belongs to China's Sany Group.
It alleges Obama's order regarding their acquisition of the wind farms violates the United States Constitution by depriving Ralls of property without providing adequate opportunity to be heard.
The decision against the acquisition was based on the wind farm being close to a local military no-fly zone.
Jialiang says they didn’t know the military base was nearby and their lawyers had not detected the problem.
CFIUS says Ralls will get no compensation.
[Derek Scissors, Senior Research Fellow, Heritage Foundation]:
"CFIUS can do almost anything legally. If they adopt unwise policies, then foreign firms should criticize the U.S. and people like me will criticize the U.S. too. But legally they don't have to pay compensation because legally they have the authority to do these things."
Scissors says he is sympathetic with Ralls and says if they asked for compensation before making an investment, they would have more than likely won the case.
Sany will persist in the lawsuit to the end for a fair and just result.