WuXi AppTec Sues U.S. Department of Defense, Demands Reversal of 'China Military-Industrial Enterprise' Designation

Leading Chinese pharmaceutical R&D and manufacturing company WuXi AppTec announced on June 11 (U.S. time) that it has filed a lawsuit against the U.S. Department of Defense in the U.S. District Court for the District of Columbia.

WuXi AppTec maintains that the U.S. Department of Defense's decision to designate it as a "China military-industrial enterprise" under Section 1260H is erroneous and lacks factual basis or legal standards supported by applicable statutes or case law.

The announcement states that to protect the interests of its clients, partners, employees, and shareholders, WuXi AppTec has requested the court, among other things:

Declare the U.S. Department of Defense’s designation of WuXi AppTec as a "China military-industrial enterprise" invalid, null, and without any legal effect;

Revoke and rescind the designation of WuXi AppTec as a "China military-industrial enterprise";

Remove WuXi AppTec from the 1260H list.

The statement emphasized that since its inception, WuXi AppTec has stood shoulder-to-shoulder with thousands of pharmaceutical and life sciences companies, committed to a pure and steadfast mission: helping customers bring life-saving and quality-of-life-improving therapies and drugs to patients worldwide who need them. We will continue to fully fulfill this mission, working hand-in-hand with our partners and clients as always. We also believe that facts will ultimately prevail.

On June 8, the U.S. Department of Defense updated the so-called "China Military-Industrial Enterprise" list (also known as the CMC list) under Section 1260H of the National Defense Authorization Act, adding several companies, including WuXi AppTec. WuXi AppTec immediately responded by stating it would take prompt measures to challenge and correct this erroneous decision, noting that WuXi AppTec does not meet the statutory criteria for being designated as a "China military-industrial enterprise." The company clarified that it is not owned, controlled, or affiliated with any Chinese military or government entity; does not provide services to the Chinese military; and has no connection to China’s defense industrial base or military-civil fusion initiatives. Therefore, the grounds cited for placing WuXi AppTec on the 1260H list are entirely inconsistent with the facts.

In response to the U.S. practice of listing Chinese tech firms as military-affiliated enterprises, China's Foreign Ministry spokesperson Lin Jian stated on June 9 that China has consistently opposed the U.S. broadening the concept of national security, creating various discriminatory lists, and unjustly targeting Chinese enterprises. We urge the U.S. side to correct its wrong actions and stop unjustly targeting Chinese companies. China will take necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises.

There have been previous successful cases challenging inclusion on the U.S. Department of Defense’s "China military-industrial enterprise" list. For example, after Xiaomi was added to the list in January 2021, it filed a lawsuit. On May 25, four months later, the U.S. District Court for the District of Columbia issued a final judgment, ruling to revoke the U.S. Department of Defense’s designation of Xiaomi as a "China military-industrial enterprise."

Source: sputniknews

Original: toutiao.com/article/1867752802844755/

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