Chinese genetic sequencing company Novogene has sued the US Defense Department over its designation as a company supporting China’s military, arguing that the decision is unlawful and has harmed its business and reputation, Reuters reported.
Filed in federal court in Washington, the lawsuit challenges Novogene’s inclusion on the Pentagon’s list of “Chinese military companies,” with the firm maintaining that it does not develop or sell products for military use.
Novogene was added to the list alongside Alibaba, Baidu, BYD, and NIO.
The designation bars the Pentagon from entering into contracts directly with listed companies, with broader restrictions set to take effect in 2027 covering purchases of their products and services through third parties.
Novogene, whose US subsidiary employs around 180 people at its Sacramento office and sequencing centers in California and Oregon, said the designation has caused substantial economic and reputational harm.
Other Companies Challenge Listings
Novogene is among several Chinese companies contesting their inclusion on the Pentagon’s list and the restrictions associated with the designation.
Last week, e-commerce giant Alibaba obtained a temporary court order protecting its access to Pentagon contracts while it challenges its listing.
In October, the US military announced plans to bar vehicles made by Chinese automaker BYD from Kadena Air Base in Japan, citing security concerns after the company was added to the Pentagon’s list.
Biotechnology firm WuXi AppTec also secured a temporary court order in August blocking its inclusion on the list.
Drone manufacturer DJI made progress in its own legal challenge that month, when an appeals court ordered a lower court to reconsider its case.
The appeals court found grounds to question whether the unclassified evidence supported the Pentagon’s conclusion that DJI had helped China’s defense industry.
The legal challenges come amid broader efforts by Washington to limit defense-related ties with Beijing.
Earlier this year, US President Donald Trump tightened restrictions on defense contractors seeking permission to purchase critical minerals from China.
