Sany expresses confidence in lawsuit against Obama

Chinese heavy machine maker Sany Group Thursday expressed its determination to carry on in its lawsuit against US President Barack Obama, while a US court reviews whether to hear the case or not.

The Washington district court Wednesday began its hearing on a lawsuit filed by Ralls Corp, a US company owned by two executives of Sany Group, which challenges the US president and the Committee on Foreign Investment in the United States (CFIUS).

Wu Jialiang, CEO of Ralls and vice president of Sany, said Thursday that he has faith in the justice of the US judicial system, and it is up to the US court to decide Ralls' fate.

A Bloomberg report said Thursday the US Department of Justice said the lawsuit "must be dismissed, arguing the Defense Production Act bars judicial review of presidential orders suspending or prohibiting an acquisition of a US business by a foreign person."

It may take the district court a week to give a result of its decision whether or not to accept this case. If the district court drops the case, Ralls will appeal to a higher court, Wu said.

Ralls was ordered on September 28 to shut down its scheduled four wind-farm projects in Oregon by Obama, due to US national security risks, as the farms are located near a naval training facility.

After negotiations for $20 million compensation with the CFIUS ended in vain, Sany took legal actions against Obama and CFIUS on October 1, arguing that the order is against the US constitution and no detailed evidence was offered.

"The recent barrage of business disputes between Chinese companies and the US authorities, especially the ongoing lawsuit filed by Sany Group, demonstrates that the US government doesn't trust China as a business partner," He Weiwen, co-director of the China-US-EU Study Center under the China Association of International Trade, told the Global Times Thursday.

He noted that Chinese companies will need to adopt a more prudent investment strategy on US soil, such as conducting prior communications with local US authorities regarding planned projects, to make sure future business operations go smoothly.

The US House of Representatives Intelligence Committee released a report last month, claiming that Chinese companies Huawei Technologies Co and Zhongxing Telecommunication Equipment Corporation (ZTE) posed a possible threat to US national security.

Mei Xinyu, a researcher with the Chinese Academy of International Trade and Economic Cooperation affiliated to the Ministry of Commerce, told the Global Times Thursday that he thinks the reasons behind the recent trade disputes between Chinese companies and the US is not only trade protectionism, but also the US firms' attempts to halt their Chinese rivals' development.

Both Mei and He Weiwen noted that the chance of the US court accepting Sany's lawsuit remains "slim," as Chinese companies are usually not familiar with the judicial system and regulations in the US.