Pentagon drops WuXi AppTec from its ‘Chinese military companies’ list, but leaves the door open

The US Department of Defense has removed WuXi AppTec, a Chinese contract research, development and manufacturing company for drugs, from its Section 1260H list of “Chinese military companies.” The notice was signed on November 5 and is scheduled for publication in the Federal Register on November 10. In it, the Deputy Secretary decides to take the company off the list published on June 10, 2026.

The stated reason is a court order. The removal complies with the order of the federal court in the District of Columbia that, on August 7, granted WuXi a preliminary injunction barring the Department from enforcing or giving effect to the designation. The same notice, however, says the decision is “without prejudice to relisting the company on additional or supplementary grounds.”

In a filing to the Hong Kong stock exchange, reproduced by Chinese portal Eastmoney and by GMT Eight, WuXi AppTec said it learned of the decision on November 9 and that it relieves the company of “further adverse effects” from the designation.

The fight began in June. The updated list naming WuXi was posted on June 8 and published in the Federal Register on June 10 with a one-sentence justification: the company was “indirectly owned by SASAC and is indirectly affiliated with SASTIND and the PLA.” WuXi sued the Department on June 11. In the August ruling, Chief Judge James Boasberg found the company was likely to show the designation was arbitrary and capricious. One example: the Pentagon’s internal report treated 5.32% as a stake held in WuXi by a fund linked to state-owned AVIC, when the figure was WuXi’s weight in the fund’s portfolio.

The stakes go beyond the Pentagon. According to the ruling, Section 851 of the 2026 defense authorization law, known as BIOSECURE, directs the US government to publish by December 18, 2026 an initial list of “biotechnology companies of concern.” To be on it, a company must be on the 1260H list and be involved in biotechnology equipment or services. Once the restrictions apply, federal agencies may not buy from those suppliers or contract with companies that use their services in performing the contract. The judge noted that after the listing, WuXi’s customers and suppliers cancelled contracts and moved business to competitors.

The case is not over: the injunction holds while litigation continues. According to Pharma Manufacturing, WuXi general counsel Howard Wu acknowledged on an earnings call last month that the company could still be named under BIOSECURE, and said it was not aware of any such proposal. The November notice removes only WuXi from the list. The June list also includes, for example, genomics groups BGI and MGI and battery maker CATL.