WuXi AppTec fights ‘Chinese military company’ designation

WuXi AppTec has filed a complaint at the US District Court for the District of Columbia against Department of Defense, challenging its recent designation as a ‘Chinese military company’ under the National Defence Authorisation Act (NDAA). The listing potentially blocks the firm from securing contracts with US government funding.

In letters to suppliers and customers, Dr Ge Li, chairman and CEO (pictured), and co-CEOs Dr Minzhang Chen and Dr Steve Yang, stated that the firm is “acting swiftly and decisively as we are confident this designation is wrong and unsupported by the facts or legal criteria”. They also stressed that its operations in the US and elsewhere remain fully operational and promised to keep them apprised of any significant developments.

“We want to be absolutely clear,” the three CEOs stated. “WuXi AppTec is not a Chinese military company — not based on an objective review of the facts, and not under the statutory designation criteria for the Section 1260H list under US law. The allegations being advanced for our inclusion on the 1260H list are factually incorrect.”

They added that no member of the board or the senior executive team has military or political party affiliation and the firm has never been placed on any government sanctions list. In addition, they noted, the Biosecure Act only imposes restrictions on work performed under future US government contracts or otherwise involving government funding, and this after a ‘grandfather’ period of five years that is expected to start in mid-2028. 

The 1260H List identifies entities that the Secretary of Defence/War has determined to be ‘Chinese Military Companies’ that are ‘operating directly or indirectly in the United States’. The term is broadly defined to include any thought to be is directly or indirectly owned, controlled by, affiliated with or acting (officially or unofficially) as an agent or on behalf of specified Chinese military, security or other government bodies.

The US Department of Defence/War first published the 1260H List in January 2025. On 8 June, it added 65 new entities, 17 new parent-level listings and 48 new subsidiaries of previously listed parent companies. It also deleted ten previously listed entities upon determining that they do not operate directly or indirectly in the US.

In addition to companies active in technology, including Alibaba and Baidu, electric vehicles and batteries, solar power, display and optical components, and drones and robotics companies, the update also affected WuXi AppTec, Complete Genomics and Novogene as ‘Biotechnology Companies of Concern’. This appears to be implementing the ‘Biosecure’ provisions of the NDAA for FY 2026, which restrict the use of US federal contract, grant and loan funds to procure equipment or services produced or provided by these companies. 

The Chinese Ministry of Foreign Affairs has called the List “yet another example of the US overstretching the concept of national security and formulating discriminatory lists to go after Chinese businesses”. It has vowed to take “necessary measures” to defend their rights and interests but has yet to retaliate directly.