A US federal judge on Friday temporarily blocked the Pentagon from designating Chinese biotechnology group WuXi AppTec as a “Chinese military company”, finding that defence officials repeatedly misread the evidence used to justify the decision.
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 say whether the department planned to appeal, citing a policy of not commenting on ongoing litigation.
WuXi AppTec did not immediately respond to a request for comment.
The ruling represents an early legal victory for one of China’s largest pharmaceutical research and manufacturing service providers and a setback for Washington’s expanding use of national-security restrictions against major Chinese commercial companies.
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