US judge blocks Pentagon from listing WuXi as Chinese military-linked firm
The biotechnology company said in its lawsuit that its designation as a Chinese military company was arbitrary, capricious, unsupported by the facts and "the product of political pressure".
A federal judge has prevented the U.S. Defense Department from listing Chinese biotechnology firm WuXi AppTec Co on a blacklist of companies allegedly supporting Beijing's military, according to Friday's ruling. U.S. District Judge James Boasberg made the decision after the company filed a lawsuit, arguing that the government lacked sufficient evidence to justify the designation.
Boasberg stated that a "scarlet letter sends a clear message: keep away," noting that WuXi's clients and suppliers have since canceled contracts and moved to competitors. In response to the court's decision, WuXi appreciated the ruling, stating it would relieve them of immediate adverse consequences during litigation. The biotech company employs around 450 people in the U.S. and serves over 1,000 customers domestically.
The company's board and executives are primarily U.S. citizens, and roughly 70% of its revenue last year came from U.S. customers. WuXi's lawsuit accused the Pentagon of designating it as a Chinese military company as arbitrary, capricious, unsupported by facts, and the product of political pressure. The designation expanded the Pentagon's blacklist to 188 companies in June, driven by concerns over China's military tapping its private sector amid heightened geopolitical tensions between Beijing and Washington.
The Defense Department cannot contract with or purchase from listed companies starting later this month, with the ban extending to 2027. Other firms added to the list include Alibaba, Baidu, BYD, and NIO. WuXi, founded in 2000, provides research, development, and manufacturing services to more than 4,000 pharmaceutical and life-sciences companies, including over 1,200 U.S. customers. Its market value is approximately $43 billion.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.