Chinese e-commerce and technology giant Alibaba has launched a high-stakes legal challenge against the US government, suing to get off a Pentagon blacklist that claims it is linked to the Chinese military.
The lawsuit, filed in a California federal court, comes after the US Department of Defense (DoD) placed Alibaba on the so-called 1260H list, branding the firm a “military-civil fusion contributor to the Chinese defence industrial base” because of its regulatory ties to Beijing. The Pentagon has said that because Alibaba complies with Chinese technology regulators, it is effectively an arm of the military.
“Chinese tech giant Alibaba sues US Pentagon after being labelled a military-linked firm.”
But Alibaba pushed back, claiming the determinations “have no basis in fact or law”. The company countered that none of its independent board members had any military affiliation, and noted that every multinational operating in China – including American firms – must follow the exact same local rules. Its platforms, it said, are built for retail and cloud computing, not weapons or intelligence.
“Alibaba is not a Chinese military company nor part of any military-civil fusion strategy,” the company told the BBC. “The decision to place Alibaba on the 1260H list is arbitrary and capricious, and we are filing a lawsuit against the Department of War to demand removal from the list.”
The challenge comes after the Pentagon recently expanded its blacklist to include other major tech names – Baidu, BYD and Nio – which will be banned from Pentagon business from the end of the month.
While the blacklist does not freeze Alibaba’s finances immediately, it triggers a brutal operational penalty on 30 June. From that date, the Pentagon is legally banned from doing business with any blacklisted firm. Crucially, the law also extends to any US contractor that shares a lobbyist or law firm with a blacklisted entity. Alibaba argues that this restriction creates a functional blockade, forcing its long-term American advisers to sever ties to protect their own lucrative defence contracts. The rule, the company says, effectively strips it of its political and legal voice in Washington at the exact moment it needs to defend itself.
According to the complaint, Alibaba had previously asked to meet with the agency to address the Chinese military affiliation concerns, including presenting evidence of its US economic contributions. However, even after its submissions, the agency did not raise any concerns nor request additional information. Instead, it “designated Alibaba without notice or a fair hearing”, the complaint notes.
The DoD declined to comment on the matter, telling the BBC: “We do not comment on ongoing litigation.”