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Chinese biotechnology company WuXi AppTec has been removed from the US Department of Defense's list of companies identified as having links to China's military. The decision follows a federal court ruling that blocked the Pentagon from enforcing the designation, according to a government notice published on November 9.
The deputy secretary of defense approved the removal in response to the court's order, the government posting said. The development marks a significant change for WuXi AppTec, which had challenged its inclusion on the list through legal action.
The company filed a lawsuit against the US government after being added to the Pentagon's list in June. WuXi argued that the designation was arbitrary, unsupported by evidence and influenced by political pressure. It also said the decision had caused reputational and operational damage to its business.
WuXi's legal action followed the Pentagon's expansion of its list of alleged Chinese military companies on June 8. The updated list included 188 entities, among them major technology, automotive and biotechnology businesses.
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A US federal court in Washington subsequently barred the Defense Department from enforcing the designation against WuXi. The ruling provided the basis for the latest decision to remove the company from the list.
The Pentagon's designation had raised concerns among investors and business partners because of its potential impact on the company's US operations and commercial relationships.
WuXi AppTec provides research, development and manufacturing services to pharmaceutical and biotechnology companies worldwide. Its work includes drug discovery, laboratory testing and manufacturing support for the life sciences industry.
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The company's removal comes amid continuing tensions between Washington and Beijing over technology, trade and national security. The Pentagon maintains its list to identify Chinese companies it believes could support Beijing's military development.
Being included on the list can create restrictions on future US government contracts and affect business relationships. WuXi's removal, however, follows a court order rather than a broader change in US policy towards Chinese companies.
The development offers relief to WuXi as it continues its operations in the global biotechnology market.