US ruling an 'early victory' for Sany?

BEIJING -- Chinese machinery manufacturer Sany Group may take further action against the US government over a controversial wind farm purchase.

A US federal appeals court sided with the Chinese firm and ruled on Tuesday that the US government had violated the rights of Ralls Corp. owned by two executives of Sany Group, when it rejected the company's bid to purchase four wind farms in the US state of Oregon.

US President Barack Obama issued a presidential order in September 2012 to prevent Ralls from buying the wind farms, citing national security risks. The installations are near to a naval weapons systems training facility. Obama's presidential order followed a recommendation from the Committee on Foreign Investment in the United States (CFIUS), an inter-agency committee headed by the US Treasury Secretary, which reviews attempts to bring US businesses under foreign ownership. Ralls immediately sued Obama for blocking the deal, claiming that the order exceeded the president's constitutional rights and failed to provide detailed evidence.

Three possibilities following the ruling exist, Xiang Wenbo, a board member of Sany, said Saturday at a press conference in Beijing.

If CFIUS and Obama decide not to appeal, then Sany will win the case.

If CFIUS and Obama appeal, Sany will also continue their pursuit.

In the third instance, it cannot be ruled out that lawyers from both sides will strike a deal and end the logjam.

Sany may continue with the Oregon wind farms purchase, or transfer their ownership to others, or purchase wind farms in different locations, said Xiang, adding that "a final decision is yet to be made".

"The case has set alarm bells ringing for the United States, and it should learn that it cannot focus merely on its own short-term interests," Chinese trade expert Mei Xinyu of the Ministry of Commerce, said at the press conference.

With the expansion of Sino-US trade, more similar cases are likely to emerge and the United States should not underestimate Chinese enterprises' capabilities to protect their legitimate interests, Mei cautioned.