U.S. Treasury Building
"The Wind Farm Sites are All Within or in the Vicinity of Restricted Air Space...."
"The Wind Farm Sites are All Within or in the Vicinity of Restricted Air Space...."
WASHINGTON – As chair of the Committee
on Foreign Investment in the United States (CFIUS), the U.S. Department of the
Treasury today issued the following statement about the President’s decision
regarding Ralls Corporation:
The President issued an order prohibiting the
acquisition and ownership of four wind farm project companies by Ralls
Corporation, its owners, its subsidiaries, and its affiliates. 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 President’s action demonstrates the
Administration’s commitment to protecting national security while maintaining
the United States’ longstanding policy on open investment. The President
exercises his authority under section 721 with a focus on national security
concerns and is committed to ensuring the fair and equitable treatment of all
foreign investors. 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.
The President’s decision took into consideration
the factors described in subsection 721(f), as appropriate, and the
recommendation by the Committee on Foreign Investment in the United States
(“CFIUS”) that he issue an order prohibiting this transaction. CFIUS is
an interagency committee whose purpose is to review transactions that could
result in the control of a U.S. business by a foreign person in order to
determine the effect of such transactions on the national security of the
United States. In assessing the transaction’s impact on national
security, CFIUS conducted both a 30-day, first-stage review, and an additional
45-day, second-stage investigation. CFIUS’s detailed analysis took into
account all relevant national security factors, including those elements
enumerated in section 721. CFIUS also received a thorough analysis of the
threat posed by this transaction from the Office of the Director of National
Intelligence, as required by section 721.
CFIUS is chaired by the Secretary of the
Treasury and includes as members the Secretaries of State, Defense, Commerce,
Energy, and Homeland Security, the Attorney General, the Director of the White
House Office of Science and Technology Policy, and the U.S. Trade
Representative. The Director of National Intelligence and the Secretary
of Labor participate as non-voting, ex-officio members.
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