After dodging a layer of U.S. scrutiny thus far, Chinese CDMO WuXi AppTec is back in the government’s crosshairs. The company is now listed in the U.S. | Inclusion on the Pentagon’s 1260H list automatically makes WuXi AppTec one of the “biotechnology companies of concern” under the Biosecure Act. WuXi AppTec maintains that its place on the list was "clearly a mistake," a spokesperson said.

Designation of Chinese firms fuels investor unease, with markets bracing for potential Fed tightening and unwinding of AI trade.

The designation could threaten a key revenue stream for the drug contractor and complicate research, manufacturing and supply chains for American pharmaceutical firms.