WuXi AppTec (HKG:2359, SHA:603259) won a preliminary injunction temporarily blocking the U.S. Department of Defense from enforcing its designation of the company as a "Chinese military company," according to a Sunday filing with the Hong Kong bourse.
The U.S. District Court for the District of Columbia issued the injunction Aug. 7, following WuXi AppTec's motion filed June 29. The company sued the Defense Department on June 11, challenging its inclusion on the Section 1260H list as erroneous and unsupported by the facts or applicable law.
WuXi AppTec is seeking to have the designation declared invalid and set aside, and to be removed from the Section 1260H list.
The preliminary injunction protects the company from immediate adverse consequences of the designation while the litigation proceeds. The underlying case remains pending.
The Section 1260H list identifies companies the Defense Department considers affiliated with China's military. Inclusion can restrict procurement and create reputational risks.