In October, Sany-owned Ralls Corp announced plans to initiate legal proceedings against the US government after Obama blocked Ralls from owning the four 10MW wind projects on grounds of national security. The projects are located near a US naval base.
Federal judge Amy Jackson upheld Obama's right to block Ralls' ownership of the four wind farms. However, she said the US government should explain its reasoning behind the decision.
In July, projects were cancelled by the Committee on Foreign Investment in the United States citing "national security risks" as the projects were near restricted airspace.
In a statement, the US Treasury said it was reviewing Jackson's decision.
The government used the Defense Production Act to prohibit Ralls from challenging the decision. It was the first time in 22 years that a US president has blocked a foreign business deal.
The act, which came into force in 1950, is largely concerned with procurement and gives the president power to force private businesses to fulfil military orders.
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