Pentagon Removes WuXi AppTec From Chinese Military Blacklist

The United States Department of Defense removed the Chinese biotechnology company WuXi AppTec from its Section 1260H list of Chinese military companies. The decision, announced in a Federal Register notice on November 10, 2026, followed a legal challenge by the company which argued its inclusion on the blacklist was arbitrary, capricious, and driven by political pressure.

The removal stems from a preliminary injunction issued on August 7, 2026, by Chief Judge James E. Boasberg of the U.S. District Court for the District of Columbia. The court found that the Pentagon had conflated portfolio investments with direct ownership and failed to prove that the company's laboratory work established defense-linked partnerships.

Following the announcement, WuXi AppTec shares surged more than 6 percent at the open in Hong Kong and rose approximately 1.8 percent in Shanghai. In a filing to the Hong Kong bourse, the company stated that the decision "relieves the company from further adverse consequences of the 1260H designation."

While the delisting reduces geopolitical uncertainty for the firm, the court noted that the Section 1260H list is distinct from the upcoming BIOSECURE Act list of biotechnology companies of concern, which is expected to be published by December 18, 2026.