China is monitoring Sany Group's judicial action against US President Barack Obama over an investment plan in the United States, China's Minister of Commerce Chen Deming said yesterday in Beijing.

"As this involves an enterprise and a foreign government, the Chinese government is watching and investigating (the progress)," Chen said.

At the weekend, a Sany spokesman said the company is determined in its judicial action against Obama and will appeal to the circuit court or the supreme court of the US.

Arguing that Obama should explain his order Ralls Corp, a Sany affiliate in the US, has filed a lawsuit in the US challenging the president's decision last September to bar the firm from building four wind farms and ordering it to divest all interest in the project, close to a navy base in Oregon. This was the first transaction blocked by a US president on national security grounds in 22 years.

US District Judge Amy Berman Jackson ruled last month that presidential orders aren't subject to a judicial review but Ralls could still continue with a part of its lawsuit that calls Obama to legally explain his September decision.