A US federal judge on Friday, August 7th, 2026, temporarily blocked the Pentagon from labeling Chinese biotechnology company WuXi AppTec as a “Chinese military company.” US District Chief Judge James Boasberg ruled that defense officials repeatedly misinterpreted the evidence used to justify the designation.

Judge Boasberg granted WuXi a preliminary injunction preventing the Department of Defence from enforcing or acting on the designation while the company’s lawsuit proceeds. In his 35-page opinion, Boasberg noted the designation acted like “a scarlet letter” that sent a clear message to customers and suppliers to avoid WuXi, leading many to cancel contracts, end long-standing relationships, or shift business to competitors.

WuXi AppTec and the US Department of Defence did not immediately comment on the ruling. The decision marks an early legal win for WuXi, one of China’s largest pharmaceutical research and manufacturing service providers, and a setback for Washington’s expanding national-security restrictions on major Chinese commercial firms.

However, the ruling does not permanently remove WuXi from the Pentagon’s Section 1260H list nor bar the Department of Defence from redesignating the company if it presents evidence that meets legal standards.

Sources

South China Morning Post World