DoD Removes WuXi AppTec from the 1260H List

Executive Summary

On November 10, 2026, the Department of Defense (DoD) removed WuXi AppTec Co., Ltd. (“WuXi”) from the list of “Chinese military companies operating in the United States” under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021 (the “1260H List”).¹ This removal follows the August 7, 2026 order of the U.S. District Court for the District of Columbia granting WuXi’s motion for a preliminary injunction barring DoD from enforcing WuXi’s designation on the 1260H List. However, the removal from the 1260H List does not preclude DoD from relisting WuXi on additional or supplementary grounds, nor does it preclude WuXi from being named a biotechnology company of concern (BCC) under the BIOSECURE Act through an alternative pathway.

Our prior alert discussing the August 2026 court decision is available here, and a summary of the full procedural history is listed below.

Procedural History

On June 8, 2026, DoD published an updated 1260H List that included WuXi, supported by a single sentence: “WuXi AppTec is indirectly owned by SASAC and is indirectly affiliated with SASTIND and the PLA.”²

WuXi promptly challenged the designation in the U.S. District Court for the District of Columbia, asserting, among other arguments, substantive and procedural claims under the Administrative Procedure Act (APA).

On August 7, 2026, the court granted a preliminary injunction barring DoD from enforcing WuXi’s designation on the 1260H List, finding that WuXi established a likelihood of success on the merits of its claim that the designation was arbitrary and capricious.³

The injunction remains in effect during the pendency of the litigation. The court expressly noted, however, that the injunction does not prevent DoD from redesignating WuXi based on a justification that accurately describes the evidence and reasonably explains why that evidence satisfies the statute.

Scope of Removal and Implications

In a Federal Register notice published on November 10, 2026, DoD stated that the Deputy Secretary of War “decided to delist” WuXi from the 1260H List, “without prejudice to relisting the company on additional or supplementary grounds.” The notice explained that this decision was “in compliance with” the court’s August 7, 2026 order.

This removal is significant, but it is not the end of the story for WuXi. Under the BIOSECURE Act, a 1260H List designation is a necessary predicate for BCC status under one of two possible pathways. The first pathway requires that a company both appear on the 1260H List and be involved in the manufacturing, distribution, or procurement of biotechnology equipment or services.⁴ Absent a redesignation by DoD on a different justification that can withstand judicial scrutiny, WuXi cannot be named a BCC through this pathway.

However, the U.S. Office of Management and Budget (OMB), which is responsible for publishing the initial BCC list, may still designate WuXi through the second pathway. This pathway applies to a company that (i) is subject to the administrative governance structure, direction, or control of, or operates on behalf of, the government of a foreign adversary; (ii) is to any extent involved in the manufacturing, distribution, provision, or procurement of biotechnology equipment or services; and (iii) poses a risk to the national security of the United States, based on statutorily defined criteria.⁵

The OMB Director is expected to publish the initial BCC list by December 18, 2026. If WuXi is ultimately designated a BCC through either pathway, federal agencies, as well as federal contractors and recipients of federal grant or loan funding, will be prohibited from procuring biotechnology equipment or services provided by WuXi in the performance of federal contracts or in connection with federal grants or loans. These prohibitions would likely take effect around August 2028, and the BIOSECURE Act provides a five-year grandfathering provision for existing contracts.

Key Takeaways

Although DoD’s removal of WuXi from the 1260H List appears to foreclose one pathway to WuXi’s designation as a BCC, DoD has expressly reserved the right to relist WuXi on other grounds, and OMB may still designate WuXi as a BCC under the second pathway.

More broadly, dealings with China-linked entities remain subject to heightened scrutiny in U.S. legislative and regulatory contexts. Companies and institutions should ensure that their dealings with WuXi and other potentially listed entities comply with all applicable laws and regulations, including the U.S. Department of Justice Data Security Program (28 C.F.R. Part 202) and other applicable frameworks governing foreign activities.