China's WuXi sues US over allegations it supports Beijing's military

A Chinese biotechnology company sued the US government on Thursday (June 11) over being placed on a list of businesses from China that the US Department of Defence has linked to that country's military.

WuXi AppTec filed its complaint in the Washington, DC, federal court, calling its inclusion on the list arbitrary, capricious, unsupported by the facts and "the product of political pressure".

It also accused the US government of inflicting substantial reputational and operational harm by branding it a national security threat without any legal or factual basis.

The lawsuit seeks WuXi's removal from the list.

A Pentagon spokesperson said the agency does not discuss pending litigation.

US expanded blacklist

WuXi's lawsuit came three days after the Pentagon expanded its blacklist to 188 companies, reflecting concern that China's military could tap that country's private sector for advancements, amid elevated geopolitical tensions between Beijing and Washington.

It also came less than one month after US President Donald Trump met China's Xi Jinping in Beijing, with the two leaders maintaining a delicate truce on trade issues.

Under recent US law, the Defence Department cannot contract with companies on the list starting later this month, and cannot buy their products or services via third parties beginning in 2027. 

Inclusion on the list does not mean formal sanctions.

Other businesses added to the list this week include e-commerce company Alibaba, internet search company Baidu and automakers BYD and Nio. 

The list is updated at least annually, and businesses can petition for removal.

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'Company of concern' label could follow

According to the Pentagon, WuXi's inclusion reflected the company being owned indirectly by China's state asset regulator, known as Sasac, and affiliated indirectly with the People's Liberation Army and a civilian government agency that handles defence matters, known as SASTIND.

The listing opens the door to WuXi being labelled a "company of concern" under the Biosecure Act, a law Trump signed in December that restricts federal agencies' business dealings with non-US biotechnology companies.

WuXi rejected the Defence Department's accusations before suing. "We want to be absolutely clear: WuXi AppTec is not a Chinese military company," the company's leaders said in a letter to customers.

Founded in 2000, WuXi said it provides research, development and manufacturing services to more than 4,000 pharmaceutical and life-sciences companies, including more than 1,200 customers in the US. Its market value is about US$43 billion (S$55.3 billion), Reuters data shows.

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