WuXi AppTec sues to get its name removed from U.S. blacklist
Pharmaceutical services provider WuXi AppTec Co. Ltd. (2359.HK; 603259.SH) has sued the U.S. Defense Department, seeking to have its name removed from the department’s list of Chinese companies with military ties, Caixin reported this week.
In its June 11 lawsuit filed in the U.S. District Court for the District of Columbia, AppTec called the military designation “erroneous and unsupported by the facts or the legal criteria under the applicable statutes and case law.” It asked the court to nullify the designation and require the removal of its name from the list. That list, formally known as Section 1260H, contains names of companies the Defense Department believes are linked to China’s military.
WuXi AppTec was one of 65 Chinese companies added to the list on June 8. The Defense Department said it made its determination because AppTec is indirectly held by China’s State-owned Assets Supervision and Administration Commission (SASAC), and is indirectly linked to the State Administration of Science, Technology and Industry for National Defense.
WuXi AppTec’s Hong Kong-listed stock initially fell about 6% in the two trading days after its name was added to the list. But the stock has gained most of that back since then, and is currently up about 25% this year.
By Doug Young
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