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OrderPresidential OrderObama · D Quiet signal

Presidential Order

Regarding the Acquisition of Four U.S. Wind Farm Project Companies by Ralls Corporation

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In simple terms

President Obama issued a rare presidential order under the Defense Production Act blocking a Chinese-owned company (Ralls Corporation, affiliated with Sany Group) from acquiring four Oregon wind farm projects near a U.S. Navy weapons systems training facility. The order mandates divestment within 90 days (extendable by 3 months), removal of all equipment within 14 days, and imposes ongoing CFIUS oversight and compliance verification.

Federal Register Open PDF 77 FR 60281

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 77 FR 60281

    Federal Register PDF

  3. CFIUS concludes verification procedures after divestment completed

  4. CFIUS objection window for proposed third-party buyer

  5. Maximum extension for divestment deadline if CFIUS requires

  6. Complete divestment of all interests in Project Companies and assets

  7. Remove all items/structures from Properties and submit signed certification

Key directives

  • Prohibit acquisition and ownership of four Oregon wind farm LLCs by Ralls/Sany/Duan/Wu
  • Divest all interests within 90 days (extendable by 3 months)
  • Remove all physical objects from Properties within 14 days
  • Submit signed certification of removal within 14 days
  • Cease all access to Properties
  • Block sale/transfer of Sany Group items for use at Properties
  • Condition any third-party sale on DoD verification, CFIUS notification, and 10-business-day CFIUS review window
  • Monthly compliance certifications until divestment completion
  • CFIUS authorized to conduct on-site inspections and interviews
  • Attorney General authorized to enforce order

Who is ordered

Prior policy

  • revokeCFIUS Order Establishing Interim Mitigation Measures of July 25, 2012
  • revokeCFIUS Amended Order Establishing Interim Mitigation Measures of August 2, 2012

What to expect

Immediate

  • Transaction prohibited; ownership of any interest in Project Companies barred
  • Companies must cease all access to Properties
  • Monthly compliance certifications to CFIUS begin

Near term (90d)

  • Removal of all items/structures from Properties within 14 days
  • Complete divestment of all interests due within 90 days (extendable to ~180 days)
  • CFIUS review of any proposed third-party buyer within 10 business days of notification

Long term

  • CFIUS verification procedures conclude within 90 days after divestment completed
  • Potential precedent for future CFIUS actions against Chinese investment in U.S. energy/near military installations

Risks & tensions

  • First presidential veto of a foreign acquisition under CFIUS/section 721 since 1990; signals heightened scrutiny of Chinese investment near military installations
  • Creates tension with U.S.-China trade and investment relations; Sany/Ralls later challenged constitutionality of CFIUS process (Ralls v. CFIUS)
  • Wind farm proximity to Naval Weapons Systems Training Facility (Boardman, Oregon) cited as national security concern—specific location not detailed in order text
  • Potential chilling effect on Chinese renewable energy investment in U.S.
  • Relative deadline for CFIUS verification 'within 90 days after divestment' creates uncertainty if divestment timing is contested
Presidential Order: Regarding the Acquisition of Four U.S. Wind Farm Project Companies by Ralls Corporation · Executive Orders