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Blocking investment hurts US more than China

(Xinhua) Updated: 2012-10-19 15:50

BEIJING -- Blocking investment from China will hurt the United States more than China, Ministry of Commerce spokesman Shen Danyang said Friday.

Shen told a news conference that the ministry was greatly concerned about a report that a Chinese company was blocked from investing in the US market for allegedly posing "national security risks".

"The ministry will follow the development of the case closely," he said.

US President Barack Obama issued a presidential order to prevent Ralls Corp, which is owned by two executives of Chinese construction equipment maker Sany Group, from owning four wind farms in Boardman, Oregon, citing national security risks for their locations near the Naval Weapons Systems Training Facility.

It was the first time since 1990 that a US president has formally blocked a business transaction or required a sale on such grounds.

Ralls Corp has sued Obama because "he made an unjust ruling that had a huge impact on the company".

"We hope the US judicial departments will handle the lawsuit fairly, justly and publicly," Shen said.

It was not the first time that Chinese investment in the US had been blocked with the excuse of "national security". The US House of Representatives Intelligence Committee recently issued a groundless report alleging that Chinese companies Huawei and ZTE posed a possible threat to US national security.

The report recommended that regulators block Huawei and ZTE from acquiring US companies, adding that government computer systems should not include components made by them because they "might pose an espionage risk".

"Such moves will hurt bilateral trade ties. In fact, the growth of China's investment to the US grew the slowest among all of China's trade partners in the first nine months," said Shen.

The ministry hopes the US side will refrain from politicizing trade issues and return to the right track as soon as possible, he said.

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