China WuXi AppTec files lawsuit against the US Defense Department over contested military-related designation
On Friday, Chinese biotechnology firm WuXi AppTec announced that it has initiated legal proceedings against the U.S. Department of Defense (DoD) in a federal court in Washington, Global times reported. The lawsuit, filed on Thursday local time, seeks to challenge the DoD’s decision to include WuXi AppTec on its list of so-called Chinese Military Companies (CMC).
In a formal announcement submitted to the Hong Kong Stock Exchange, WuXi AppTec stated that it is requesting the court to declare the Pentagon’s classification of the company as a CMC to be unlawful, invalid, and without legal standing. The company is specifically seeking to have this designation overturned and expunged from the Section 1260H list.
WuXi AppTec contends that the Pentagon's decision to categorize the company as a CMC under Section 1260H is erroneous and lacks a solid factual foundation. The company argues that this designation does not meet the legal standards established by applicable regulations and precedent.
The legal action primarily aims to safeguard the interests of its customers, partners, employees, and shareholders, highlighting WuXi AppTec's commitment to maintaining its reputation and operational viability in a challenging regulatory environment.
This lawsuit represents a significant step in the ongoing tensions between Chinese companies and U.S. government authorities, and is a part of US trade war on China, particularly in light of Washington's increasing reliance on national security-related classifications. Such designations have faced extensive criticism from Chinese officials and business entities, who argue that they are discriminatory, unfounded, and detrimental to normal business activities and international trade relations.
