US judge blocks Pentagon’s ‘Chinese military’ label for WuXi AppTec
Court finds defence officials misread evidence involving a state-linked fund, Chinese universities and a PLA hospital
US District Chief Judge James Boasberg granted WuXi a preliminary injunction barring the Department of Defence from enforcing or otherwise giving effect to the designation while the company’s lawsuit proceeds.
“A scarlet letter sends a clear message: keep away,” Boasberg wrote in a 35-page opinion, pointing to customers and suppliers that had cancelled contracts, ended long-standing relationships or moved business to WuXi’s competitors following the designation.
A Pentagon spokesperson declined to address the ruling or whether the department planned to appeal.
“As a matter of policy, the Department does not comment on ongoing litigation,” the spokesperson said in response to questions from the South China Morning Post.
“We welcome the court’s decision to grant the preliminary injunction we petitioned for,” a WuXi AppTec spokesperson told the Post. “This ruling relieves us from the immediate adverse consequences of the erroneous 1260H designation during the litigation process.”
The spokesperson said WuXi believed the facts presented in its court filings would prevail following “an objective and fair judicial review”, adding that its operations remained “fully functional”.