US Department of Defense Adds Novogene, WuXi AppTech, Complete Genomics to Watchlist
An update to the so-called “1260H” list alleges that these companies are indirectly owned by or affiliated with the Chinese military and national security complex.
This story has been updated to include WuXi AppTec’s lawsuit challenging the designation.
The US Department of Defense has added several biotechnology service and instrument providers to a watchlist of companies operating in the US that are allegedly associated with the Chinese military.
In a June 8 update to the so-called “1260H” list, the DoD added DNA sequencing service provider Novogene, DNA sequencing instrument maker Complete Genomics, and contract research organization WuXi AppTec. BGI and MGI Tech have previously been listed.
Inclusion on the list, which triggers provisions of the so-called “Biosecure act,” jeopardizes these companies’ ability to receive research dollars flowing from any federal source, including research funding grants, according to a blog post from attorneys at Wilmer Hale.
According to the DoD, WuXi AppTec “is indirectly owned by the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) and is indirectly affiliated with the State Administration of Science, Technology and Industry for National Defense (SASTIND) and the People’s Liberation Army (PLA.)”
In a statement, WuXi AppTec said it was “incorrectly” added to the list:
The allegations that were advanced for our proposed 1260H list designation are factually incorrect: we are not owned or controlled by or affiliated with any People’s Republic of China (PRC) military or government entity; we do not provide services to the PRC military; and we are not associated with the PRC’s defense industrial base or military-civil fusion programs.
The company has filed a lawsuit against the DoD in US federal court challenging its designation of WuXi AppTec as a “Chinese military company.”
We are acting swiftly and decisively as we are confident this designation is wrong and unsupported by the facts or legal criteria.
In a statement, MGI Tech subsidiary Complete Genomics suggested its pending sale to Switzerland-based Swiss Rockets, announced in February, would help it circumvent the effects of being added to the watchlist.
“We are currently finalizing the transaction, pending customary closing conditions, which will result in Complete Genomics becoming a fully independent company under 100 percent non-Chinese ownership,” the company said.
Novogene did not immediately respond to a request for comment. According to the DoD, “Novogene is indirectly owned by SASAC and is indirectly affiliated with the Ministry of Industry and Information Technology (MIIT) and the PLA.”
The company operates a clinical sequencing center and CLIA lab in conjunction with the University of California, Davis. Whether federal grant money will be able to be used to purchase services at that facility is unclear.