Research On Sany Group V. Obama

With the development of globalization,investing and acquiring foreign companies,which is originated from western developed countries,is becoming the main commercial activity of enterprises to connect the economic intercourse of different countries.Most countries are favorably receiving foreign investment,and looking forward to drive the growth of domestic economy.While they strictly control the foreign investment as well,which is to protect the domestic industry,the domestic market share,and the stable political environment.After the reform and opening-up policy,China has been encouraging domestic enterprises to go abroad to invest and acquire foreign business.More and more enterprises go abroad engage in investing and acquiring,and the United States is one of the best choices of these enterprises.With the growth of investment in the United States,it begins to examine and weigh the economy and policy issues with the benefits of the investment,and starts to impose restrictions on the investment of Chinese companies on the false pretenses of “National Security.” The recognition of “National Security” has became the nightmare to most Chinese companies,especially when it connects to the “Foreign-government Control transaction”,which leads to unfair treatment to our companies.In 2012,the Ralls company,which is the affiliated company of Sany Group,acquired four wind farms in Oregon.The transaction was halted by the CFIUS(Committee on Foreign Investment in the U.S.)in the name of “National Security.” President Obama halted the investment by himself after reviewing the transaction brought by the CFIUS.Though it is not rare that CFIUS called off foreign investment,this is the first time that the president of the U.S.personally halts the transaction.But Sany Group did not remain silence,it initiated a litigation instead,and appealed after first trial was not favorable to it.The Sany Group acquired victory eventually,which established the foundation of justiciability of the U.S.national security review.It is an encouragement to Chinese companies,who engaged in overseas transaction.This paper analyzes the theoretical basis of the U.S.national security review through legislate history,principle of review,range of review,way of review,and immunization of review with the combination of case in one way.In the other way,this paper tries to thoroughly analyze the solution to the national security review through this type of case,and seeks the best relief to the unfair review for Chinese government and enterprises.The first part is the factual part of this paper,which introduces details of the Sany Group case.The second part is the theoretical analysis of the legislate history,principle,range,different ways,and immunization of the U.S.National Security Review.The third part are the disputes of the Sany Group case,which are dispute of tight of jurisdiction and dispute of due procedure;the author’s evaluation and recommendation on the basis of judgment opinions;and analysis of relevant cases.The last part is effective solution to the U.S.National Security Review in micro and macro for our government.On one hand,on the enterprise level,our companies should dive more deeply into the relevant laws and regulations to adapt the latest investment strategy,and cooperate with the U.S.government to seek for the approval on early stage.On the other hand,on the government level,our government should take advantage of the BIT between China and the U.S.to impose restrictions on National Security Review;accelerating the revising of the “state-owned enterprises assets law” to expedite the marketing transition of national asset,the adjustment of economic institution,and increase the transparency of the information disclosure to eliminate the discriminate against state-owned enterprises.