US District Chief Judge James Boasberg granted WuXi a preliminary injunction barring the Department of Defence from enforcing or otherwise giving effect to the designation while the company’s lawsuit proceeds.
“A scarlet letter sends a clear message: keep away,” Boasberg wrote in a 35-page opinion, pointing to customers and suppliers that had cancelled contracts, ended long-standing relationships or moved business to WuXi’s competitors following the designation.
WuXi AppTec and the US Department of Defence did not immediately respond to requests for comment.
The ruling represents an early legal victory for one of China’s largest pharmaceutical research and manufacturing service providers and a setback for Washington’s expanding use of national-security restrictions against major Chinese commercial companies.
But the decision does not permanently remove WuXi from the Pentagon’s Section 1260H list or prevent the department from designating the company again using evidence and reasoning that satisfy the law.
