The case in question is a civil legal action brought about by AMSC and accusing Sinovel of software theft and unauthorised use of the US company's control system source code. AMSC is seeking $6 million in damages in this case.
AMSC alleges portions of its source code were used to develop control system software for Sinovel's 1.5MW turbine.
Sinovel had attempted to get the case removed from the Beijing Intermediate People's Court and transfer it to the Beijing Arbitration Commission. However, the court has denied the motion.
The decision follows a recent setback for AMSC, when the first intermediate people's court of South China's Hainan province rejected a similar AMSC lawsuit against Sinovel over infringement of computer software copyright. AMSC is appealing the ruling.
AMSC has filed for arbitration and has three civil lawsuits in the Chinese courts against Sinovel. It is seeking to recover $1.2 billion following the Sinovel's decision last year to refuse a multi-million dollar shipment of turbine components and alleged intellectual property theft.