China's WuXi AppTec Sues Pentagon Over Military Blacklist Designation
Chinese biotechnology company WuXi AppTec has sued the United States government after being placed on a Pentagon list of companies allegedly linked to China’s military. The lawsuit, filed in a Washington D.C. federal court on Thursday, argues the Department of Defense’s decision was arbitrary, unsupported by facts, and a product of political pressure. WuXi AppTec accuses the US government of causing substantial damage to its reputation and business operations by labelling it a national security threat without proper legal or factual basis. The company is seeking a court order to remove its name from the Pentagon’s blacklist. A Pentagon spokesperson declined to comment on the ongoing litigation.
The lawsuit was filed three days after the Pentagon expanded its blacklist of Chinese companies to 188 entities. This move reflects Washington’s concerns that China’s military could leverage the private sector to advance defence technology and capabilities amid rising geopolitical tensions. Under recent US legislation, the Department of Defense will be prohibited from contracting with listed companies starting later this month, and from 2027, the US government will also be barred from purchasing their products or services through third parties. However, inclusion on the list does not constitute formal sanctions.
Other major Chinese companies recently added to the list include e-commerce firm Alibaba, search engine Baidu, and electric vehicle manufacturers BYD and NIO. The Pentagon updates the list at least annually, and companies can petition for removal. The Pentagon’s decision to include WuXi AppTec was based on allegations that the company is indirectly owned by China’s State-owned Assets Supervision and Administration Commission (SASAC) and has indirect ties to the People’s Liberation Army (PLA) and the State Administration for Science, Technology and Industry for National Defence (SASTIND).
This designation also makes WuXi AppTec eligible to be labelled a ‘company of concern’ under the Biosecure Act, signed by former President Trump, which restricts federal agencies from doing business with certain non-US biotech firms. Prior to filing the lawsuit, WuXi AppTec denied the Pentagon’s allegations, with company leadership stating in a letter to customers that WuXi AppTec is not a Chinese military company. Founded in 2000, the company provides research, development, and manufacturing services to over 4,000 pharmaceutical and life sciences firms globally, including more than 1,200 customers in the United States. According to Reuters data, WuXi AppTec’s current market value is approximately US$43 billion.