US Court Bars Pentagon From Adding WuXi AppTec To China Military List
A U.S. federal judge has blocked the Pentagon from placing WuXi AppTec on a list of companies allegedly supporting the Chinese military. The judge ruled that the government failed to provide sufficient evidence to justify the designation, which had caused significant business losses for the firm.
Why it matters
The ruling highlights the legal challenges the U.S. government faces when using blacklists to restrict Chinese firms amid rising geopolitical tensions.
A US judge on Friday barred the Defense Department from including Chinese biotechnology company WuXi AppTec Co on a list of companies believed to support Beijing's military, saying the government lacked evidence to justify the decision.US District Judge James Boasberg issued an order to block enforcement of the designation of WuXi in June after the company filed suit."A scarlet letter sends a clear message: keep away," Boasberg wrote, noting that since then WuXi's customers and suppliers have canceled contracts, terminated longstanding relationships, and moved their business to competitors.The Pentagon and WuXi did not immediately respond to requests for comment.WuXi told the court the company employs roughly 450 people in the United States and serves more than 1,000 US customers.
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