(Newsroom America) -- President Obama has issued an order prohibiting the acquisition and ownership of four wind farm project companies by Chinese owned company Ralls Corporation on the grounds of national security.
The order directs Ralls Corporation to divest its interest in the wind farm project companies that it acquired earlier this year, and to take other actions related to the divestment.
Ralls Corporation is owned by Chinese nationals, and is affiliated with a Chinese construction equipment company that manufactures wind turbines.
The wind farm sites are all within or in the vicinity of restricted air space at Naval Weapons Systems Training Facility Boardman in Oregon.
The President took this action pursuant to section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 (“section 721”).
Section 721 authorizes the President to suspend or prohibit certain acquisitions of U.S. businesses by foreign persons where he finds that there is credible evidence that the foreign interest exercising control might take action that threatens to impair national security, and where provisions of law other than section 721 and the International Emergency Economic Powers Act do not provide adequate and appropriate authority to protect national security in the matter under review.
The U.S. Treasury said the president’s action demonstrates the Administration’s commitment to protecting national security while maintaining the United States’ longstanding policy on open investment.
"The Administration will continue to ensure that the United States remains the most attractive place for businesses to locate, invest, grow, and create jobs. 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," said Treasury in a statement.