Chinese genetic sequencing company Novogene has launched a legal challenge against the US Department of Defense, seeking to overturn its inclusion on a government blacklist of firms accused of supporting China’s military.
The company filed its lawsuit in the US District Court in Washington late Tuesday, arguing that the Pentagon’s decision was unlawful and had inflicted significant damage on its business and reputation.
Novogene was among several Chinese companies added to the Pentagon’s list of alleged Chinese military companies in June. The designation also covered major businesses such as Alibaba, Baidu, electric vehicle makers BYD and NIO, among others.
The company maintains that its operations have no military connection. Its US subsidiary employs approximately 180 people across its Sacramento office and genetic sequencing facilities in Sacramento, California, and Beaverton, Oregon.
“Novogene does not design, develop, or market products for military use,” the company stated in its complaint, describing the Pentagon’s action as causing “serious, irreparable, and unwarranted economic, reputational, and other harm.”
The Pentagon had not issued an immediate response to the lawsuit.
Pentagon restrictions set to tighten
Although the designation does not impose direct economic sanctions, it carries significant consequences for companies seeking to do business with the US military.
Beginning in 2027, the Pentagon will face restrictions on purchasing products and services from listed companies, including transactions conducted through third-party suppliers.
Novogene’s legal action adds to a growing wave of challenges brought by Chinese businesses against the US military designation system.
Alibaba secured a significant legal victory last week after a US judge granted its request for a preliminary injunction. The ruling prevents the government from denying Pentagon contracts to the company while its challenge to the designation proceeds.
BYD has also taken the Pentagon to court. Two of its subsidiaries filed a lawsuit last month challenging a federal law that bars Pentagon contractors from employing lobbyists who also represent blacklisted companies. The subsidiaries argued that the restriction violates their First Amendment rights.
Drone manufacturer DJI, meanwhile, has been fighting its inclusion on the list. In August, an appeals court found merit in the company’s argument that unclassified evidence did not adequately support the Pentagon’s conclusion that it contributed to China’s defense industrial base. The court directed a lower court to reconsider DJI’s request for removal.
Biotechnology company WuXi AppTec also secured a preliminary injunction from a US federal court in August, blocking its inclusion on the Pentagon list. The company had alleged that the designation was politically motivated.
For Novogene, the lawsuit represents an effort to protect its American operations from restrictions that could complicate commercial relationships and undermine its standing in the US market.
