WuXi AppTec Sues U.S. Department of Defense Over Military Designation

WuXi AppTec, a Chinese biotechnology company, filed a lawsuit in a Washington, D.C. federal court on June 11, 2026, seeking to overturn its designation as a Chinese military company. The company argues that its inclusion on the Department of Defense Section 1260H list is arbitrary, capricious, and the result of political pressure rather than factual evidence.

The legal challenge follows a June 8 update by the Pentagon, which expanded the blacklist to 188 entities, including Alibaba, Tencent, and BYD. The Department of Defense claims WuXi AppTec is indirectly owned by the state asset regulator SASAC and affiliated with the People's Liberation Army and the State Administration for Science, Technology and Industry for Defence. WuXi AppTec denies these claims, asserting it is not controlled by any military or government entity.

Under U.S. law, the designation prohibits the government from contracting with the firm starting later in June 2026 and bans third-party purchases of its services by 2027. The listing may also lead to the company being labeled a company of concern under the Biosecure Act. Separately, BGI Group refuted similar allegations of government control, while the Chinese Ministry of Foreign Affairs urged the U.S. to stop the suppression of Chinese businesses.