WASHINGTON — A U.S. federal judge has temporarily blocked the Defense Department from enforcing its designation of Chinese biotechnology company WuXi AppTec as a company tied to China’s military, ruling that the government had not provided sufficient evidence to justify the listing.
U.S. District Judge James Boasberg issued the order on Friday after WuXi AppTec sued the Defense Department over its inclusion on the Pentagon’s list of companies deemed to be linked to China’s military. The ruling prevents enforcement of the designation while the litigation proceeds.
Boasberg said the designation had already caused commercial damage to WuXi, noting that customers and suppliers had canceled contracts, ended longstanding relationships and shifted business to competitors. He wrote that the designation effectively sent a message to businesses to stay away from the company.
The Pentagon declined to comment on the ruling.
WuXi welcomed the decision, saying it relieved the company from the immediate consequences of the Defense Department's action while the case is litigated. A company spokesperson said WuXi believed the facts presented in its court filings would prevail through judicial review.
WuXi has disputed the designation, arguing in its lawsuit that it was arbitrary, unsupported by the facts and the result of political pressure. The company told the court that it employs roughly 450 people in the United States and serves more than 1,000 U.S. customers. It also said a majority of its board members and executive managers are U.S. citizens and that U.S. customers accounted for about 70% of its revenue last year.
The dispute follows the Pentagon's June expansion of its so-called 1260H list to 188 companies, reflecting U.S. concerns that China's military could benefit from the country's private-sector capabilities. Other companies added included Alibaba, Baidu, BYD and NIO.
Inclusion on the list is not a formal U.S. sanction, but it carries significant procurement restrictions. Under U.S. law, the Defense Department is barred from contracting with listed companies beginning later this month and will face broader restrictions on purchasing their products or services through third parties beginning in 2027. Companies can petition for removal from the list.
WuXi, founded in 2000, provides research, development and manufacturing services to more than 4,000 pharmaceutical and life-sciences companies, including more than 1,200 customers in the United States, according to the company. The case remains pending in federal court.
