A Chinese-owned company has filed a law suit against US President Barack Obama for blocking its purchase of wind farms near a US military base. The US president cited national security concerns for the decision.

A deal struck down, by the President of the United States of America, Barack Obama himself.

Now the company in question is fighting back, claiming that the president's order exceeded his constitutional authority and that he failed to provide detailed evidence validating the rejection.

Ralls Corp founded in the US, is now controlled by Chinese nationals through the Sany Group, one of China's biggest makers of heavy machinery, which is in turn founded and controlled by Liang Wengen, who Forbes estimates to be the second richest man in China.

And so President Obama deems it a security risk to allow the company to own four wind farms in Boardman, Oregon near a US military base.

It was the first time in 22 years that a U.S. president blocked a foreign business deal, a very rare move which some argue is detrimental to the US economy.

Edward Alden, senior fellow of US Council on Foreign Relations, said, "This is the 'game' the administration is trying to play. On the one hand, the US is trying to say to China 'Yes, we are open to your investment, please invest in our country'. On the other hand, there are a number of examples, this is only the most recent one, to show that Chinese companies are going to get special scrutiny."

Obama said in issuing his decision on Friday that he had information claiming Ralls Corporation, Sany Group and the two Sany Group executives who own Ralls could take action that threatened US national security. But Mr. Alden thinks there may be more to this.

Alden said, "I think, you know, inevitably the question is going to be raised, 'Is there a political motivation to this?' We're in the middle of a big presidential election campaign. Both candidates have been saying they are going to be tougher on trade with China, and so inevitably I think people will look at this decision."

As the US presidential election heats up, US trade relations with China have figured prominently in both campaigns. And Chinese investors will be watching closely where US politicians stand when it comes down to votes or notes.

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