President Obama's decision to block a Chinese company's purchase of four US wind farms may play well with voters now. But could anti-China sentiment hurt US growth?
Last week, US President Barack Obama barred a Chinese-owned company from buying four wind farms near a US Navy training base in the coastal northwestern state of Oregon, citing national security concerns. The order gives Ralls Corp two weeks to clear its property from the site and 90 days to divest entirely from the project. Ralls is suing the president over the decision, the first of its kind in 22 years.
Presidents rarely interfere in decisions on foreign acquisitions, which are handled by a body called the Committee on Foreign Investment in the US, or CFIUS. The last time a purchase like this was blocked on national security grounds was 1990, when then-President George H.W. Bush shut down China National Aero-Technology and Export Corp's proposed takeover of a motor and generator manufacturer.