Chinese Genetic Sequencing Firm Novogene Sues US Defence Dept Over Military Listing

Chinese genetic sequencing firm Novogene has sued the US Department of Defence over its inclusion on a government list of companies allegedly supporting Beijing’s military.

 

Novogene filed the lawsuit late on Tuesday in the US District Court for the District of Columbia, challenging its designation as a "Chinese military company".

 

In June, the Defence Department added Novogene, Chinese e-commerce giant Alibaba, internet search provider Baidu and automakers BYD and NIO, among others, to its list of Chinese military companies. The designation prohibits the Pentagon from contracting directly with the listed firms.

 

Novogene said its US subsidiary employs about 180 people at its Sacramento office and sequencing centres in Sacramento, California, and Beaverton, Oregon. The company maintained that it "does not design, develop, or market products for military use".

 

Describing the designation as unlawful, Novogene said it had caused "serious, irreparable, and unwarranted economic, reputational, and other harm". The Pentagon did not immediately respond to a request for comment.

 

Although the designation does not impose formal sanctions, it will restrict the Pentagon from purchasing products or services from the listed companies through third parties from 2027.

 

Several Chinese companies have challenged their inclusion on the Pentagon list through legal proceedings. Last week, a US judge granted Alibaba Group Holding's request for a preliminary injunction, preventing the US government from denying the company Pentagon contracts following its lawsuit against the designation.

 

Last month, two BYD subsidiaries also sued the Pentagon over a federal law prohibiting Pentagon contractors from employing lobbyists who also work with blacklisted companies. The subsidiaries argued that the restriction violated BYD's First Amendment rights.

 

In August, DJI, the world's largest drone manufacturer, challenged its inclusion on the list. A court found merit in the company's argument that unclassified records did not support the conclusion that it contributed to China's defence industrial base.

 

The appeals court directed the lower court to reconsider its decision to reject DJI's request for removal from the Pentagon list. The case remains ongoing.

 

In another development, biotechnology firm WuXi AppTec secured a preliminary injunction from a US federal court in August, blocking its inclusion on the list. The company had argued that the Pentagon's designation was politically motivated.