Sany seeks US wind-farm hearing (2)

He said the government may argue that the judge should not become involved because it is a matter of national security.

The case was "appealing" as it showed strong needs for a review, but the chances for it proceeding still hinged on presidential discretion, Cullen said.

Many legal commentators and academics think the US government has a favorable chance in the case.

Clif Burns, a lawyer with Washington firm Bryan Cave LLP who specializes in export controls and economic sanctions, said: "The Exon-Florio amendment specifically exempts presidential decisions such as this from judicial review, so Ralls' lawsuit has virtually no chance of being successful."

He was referring to a federal law enacted in 1988 that provides for scrutiny of foreign investments.

Burns said: "I don't think that Obama's decision to block (the wind-farm deals) will have much effect on future Chinese investment in the US because of the unique security concerns posed by this investment."

But Cullen said the case could have various consequences, one being that the committee on foreign investment may have to adopt more regular procedures and more transparency in dealing with such cases.

Cullen also said China has been a promising source of capital for investment worldwide. Although there have been incidences where investment has stopped, this was only on a small scale, and the US market would eventually get used to Chinese investment.

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