3 weeks ago
Judge Bars Pentagon From Adding WuXi AppTec to Military List
A judge said the United States military could not put a big medicine-making company on a special list.
The company is called WuXi AppTec, and it helps other companies research and make medicines.
The list was meant to show companies that help China's military, but the judge said there was not enough proof.
He said being on the list was like wearing a 'scarlet letter' that scared people away.
After WuXi was put on the list, some customers and suppliers stopped working with it.
WuXi said most of its top leaders are American citizens and most of its money comes from American customers.
The judge's decision means the military has to leave WuXi off the list for now.
The list includes many other companies, like Alibaba and BYD.
Being on the list means the US military cannot buy from those companies in the future.
A US federal judge barred the Pentagon from including WuXi AppTec on its list of companies believed to support China's military.
Judge James Boasberg said the government lacked evidence to justify WuXi's June designation and blocked its enforcement.
WuXi's lawsuit called the designation arbitrary, capricious, unsupported by the facts and 'the product of political pressure.'
WuXi said it employs about 450 people in the US, and US customers accounted for roughly 70% of its revenue last year.
The Pentagon's June expansion added 188 companies, including Alibaba, Baidu, BYD and NIO, to the blacklist.
- Who
- US District Judge James Boasberg, the Pentagon, and Chinese biotechnology company WuXi AppTec Co.
- What
- The court barred the Pentagon from enforcing WuXi AppTec's designation on the list of companies believed to support China's military.
- Where
- United States federal court.
- When
- The judge issued the order on Friday, after WuXi was designated in June and filed suit.
- Why
- The court found the government lacked evidence to justify the designation, which WuXi called arbitrary and the product of political pressure.
WuXi AppTec
US Defense Department
Justification for the designation
WuXi AppTec
WuXi argued the designation was arbitrary, capricious, unsupported by the facts and 'the product of political pressure,' pointing to its US-heavy board, customers and revenue.
US Defense Department
The Pentagon added WuXi during a June expansion of the blacklist out of concern that China's military could tap the country's private sector for advancements amid elevated US-China tensions.
Key facts
- Company
- WuXi AppTec Co
- Judge
- James Boasberg
- US employees
- About 450
- US customers
- More than 1,200 customers in the United States
- US revenue share
- Roughly 70% last year
- Market value
- About $43 billion
- Blacklist size
- 188 companies as of June
- Other listed companies
- Alibaba, Baidu, BYD, NIO
Quotes
James Boasberg
U.S. District Judge for the District of Columbia
“"A scarlet letter sends a clear message: keep away."”
NDTV
Sources
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