President Obama, following a recommendation of the Committee on Foreign Investment in the United States ("CFIUS"), issued a divestment order to reverse an acquisition of four wind farm projects in Oregon by a company owned by Chinese citizens. CFIUS issued its recommendation after determining that the wind farms were located in or near restricted United States military airspace. President Obama expressed concern that the acquisition might threaten U.S. national security. The divestment order marked the first time in 22 years that a President has blocked a foreign acquisition transaction on national security grounds.
The Chinese-owned company has filed a lawsuit against President Obama and CFIUS challenging the constitutionality of the divestment order on due process and equal protection grounds. The Foreign Investment and National Security Act, however, shields a President's divestment order from judicial review.
Amended Complaint in Ralls Corp. v. Committee on Foreign Investment in the United States, No. 1-12-cv-01513 (D.D.C. Oct. 1, 2012)