In a complaint filed in the U.S. District Court in Washington, Ralls Corp., owned by Chinese nationals, alleged Obama acted in "an unlawful and unauthorized manner" in issuing his order without providing "any evidence or reasoned explanation" for his decision to use a national defense law in prohibiting the acquisition and ordering the company to divest the four wind farms, China's official Xinhua news agency reported.
The issue relates to Obama's presidential order last Friday to prevent Ralls from owning four wind farms in Boardman, Ore., near a Navy weapons systems training facility, citing security risks.
The BBC quoted the U.S. military as saying the Oregon facility is used to test unmanned drones and other equipment for electronic warfare.
Xinhua said Ralls is owned by two executives of Sany Group, China's largest machinery manufacturer.
The company's lawsuit also said Obama and the Committee on Foreign Investment in the United States failed to give it "sufficient notice and opportunity to be heard prior to prohibiting its acquisition of the wind farms and imposing extraordinary restrictions on the use and enjoyment of its property interests."
"It was the first time in 22 years that a U.S. president has blocked such a foreign business deal," Xinhua said in its report. "During this election year when the U.S. economy is mired in tepid growth and high unemployment rate, both Democrats and Republicans are using China-bashing tactic to woo some blue-collar voters."
Earlier, the U.S. Treasury Department had said the CFIUS had found the wind farm sites are all within or in the vicinity of restricted airspace at the Navy facility.
It said under the Defense Production Act of 1950, Obama is authorized "to suspend or prohibit certain acquisitions of U.S. businesses by foreign persons where he finds that there is credible evidence that the foreign interest exercising control might take action that threatens to impair national security."
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