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Chinese genetic sequencing firm Novogene sues Pentagon over military blacklist


Chinese genetic sequencing firm Novogene sues Pentagon over military blacklist
Chinese genetic firm Novogene sues US over military designation.

Chinese genetic sequencing company Novogene has taken the US Department of Defence to court, challenging its inclusion on a Pentagon list of firms accused of supporting China’s military.The lawsuit was filed late Tuesday in a US District Court in Washington. Novogene is seeking to overturn its designation, arguing that the decision is unlawful and has damaged its business and reputation.The Pentagon added Novogene to its list of “Chinese military companies” in June, alongside e-commerce giant Alibaba, search engine operator Baidu and carmakers BYD and NIO. The designation prevents the US Defence Department from entering into direct contracts with these companies.Novogene has pointed out that its US subsidiary employs around 180 people at its Sacramento office and sequencing facilities in Sacramento, California, and Beaverton, Oregon. It has denied having any military links, stating in its lawsuit that “Novogene does not design, develop, or market products for military use”. The company said the Pentagon’s decision 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 amount to formal sanctions, it carries further restrictions. From 2027, the Pentagon will be barred from purchasing products or services from the listed companies even through third-party suppliers.Novogene is among several Chinese companies challenging their inclusion on the list in US courts.Last week, a US judge granted Alibaba’s request for a preliminary injunction, directing the government not to deny Pentagon contracts to the company following its legal challenge to the designation.Two BYD subsidiaries also sued the Pentagon last month. They challenged a federal law that prevents Pentagon contractors from hiring lobbyists who also represent blacklisted companies, arguing that the restriction violates their First Amendment rights.Drone manufacturer DJI, the world’s largest, has also been fighting its inclusion on the list. In August, a court found merit in its argument that unclassified records did not establish that the company contributed to China’s defence industrial base. An appeals court subsequently directed a lower court to reconsider its rejection of DJI’s request to be removed from the list. The case is still pending.Biotechnology firm WuXi AppTec also secured a preliminary injunction from a US federal court in August, blocking its inclusion on the Pentagon list. The company had argued that the decision was politically motivated.



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