The Pentagon has judged that Wuxi AppTec qualifies as a Chinese military company, adding strain to already delicate ties between the pharmaceutical manufacturer and the US.
The US Department of Defence updated its list of entities it deems “Chinese military companies” on 8 June. WuXi AppTec joined the updated slate amongst other companies with apparent non-military links, such as car manufacturer BYD and aircraft maker Comac.
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The list, known formally as Section 1260H, does not automatically result in sanctions but could aggravate international tensions due to its sweeping military tags assigned to top Chinese companies.
The DoD, also known as the Department of War under the Trump administration, stated that WuXi has links to the State Administration for Science, Technology and Industry for National Defense (SASTIND) and People’s Liberation Army (PLA). The SASTIND is an administrative bureau within the Chinese government, while the PLA is the official military force of the People’s Republic of China (PRC).
In an email to Pharmaceutical Technology, a WuXi spokesperson said the company’s inclusion in the list “was clearly a mistake, and we will take immediate actions to correct this erroneous designation”.
“We do not meet the statutory criteria for designation as a ‘Chinese military company’. The allegation basis for our 1260H list designation is factually incorrect: we are not owned or controlled by or affiliated with any PRC military or government entity; we do not provide services to the PRC military; and we are not associated with the PRC’s defence industrial base or military-civil fusion programmes,” the spokesperson added.
WuXi AppTec operates in more than 30 countries, primarily serving as a contract research, development and manufacturing organisation (CRDMO) that supports global drugmakers in drug development. In its Q1 2026 financial update, the company reported total revenues of 12.44 billion yuan ($1.83bn), representing a 39.4% year-over-year growth.
The results marked a strong performance from the company despite uncertain US-China relations. WuXi was originally included in the BIOSECURE Act, a framework of legislation designed to limit Chinese biotechs and manufacturers from accessing US funding and collaborating with US pharma companies using federal funding. Amid the period of uncertainty, WuXi sold off two of its US and UK businesses in early 2025.
An updated version of the act was enacted into law in October 2025 without WuXi listed as a company of concern, marking a win for investors.
However, last week, US bipartisan lawmakers revealed new legislation that could stifle American investments into foreign technology sectors, further risking relations between Beijing and Washington. While analysts do not predict it becoming law anytime soon, they do forecast that business development deals, joint ventures, and equity investments between Chinese and US pharmaceutical companies will decrease as a result if the framework – called COINS – is enacted.
