Chinese technology and e-commerce giant Alibaba has filed a lawsuit against the United States government, seeking to overturn its inclusion on a Pentagon blacklist that identifies companies allegedly linked to China’s military.
The legal action, filed in a federal court in California, challenges the US Department of Defense’s decision to place Alibaba on its “1260H” list, which targets firms believed to support China’s military-industrial complex through military-civil fusion initiatives.
According to the Pentagon, Alibaba’s compliance with Chinese technology regulations and its relationship with Chinese authorities justify its designation as a company connected to China’s defence sector.
Alibaba strongly rejects those claims, arguing that the decision lacks both factual and legal basis.The company stated that it operates commercial businesses focused on e-commerce, cloud computing and digital services, and has no involvement in military activities or defence projects.
Alibaba also noted that all multinational companies operating in China, including American firms, are required to comply with the country’s regulatory framework, making the Pentagon’s reasoning unfair and inconsistent.
In a statement, the company said it is neither a military enterprise nor part of any military-civil fusion programme, describing the designation as arbitrary and seeking its removal through the courts.
The case has gained additional significance because of new restrictions scheduled to take effect at the end of the month. Under those rules, the Pentagon will be prohibited from conducting business with companies included on the blacklist.
The restrictions also extend to US contractors that share legal advisers or lobbying firms with blacklisted entities. Alibaba argues that this provision effectively isolates the company by forcing American law firms and lobbying groups to sever ties in order to protect their own defence-related business interests.
According to the lawsuit, Alibaba previously attempted to engage with US officials and submitted information intended to address concerns about its alleged military connections, including details of its economic contributions in the United States.
The company claims that despite those efforts, the Department of Defense neither raised further questions nor provided an opportunity for a formal hearing before making its decision. Alibaba contends that the designation was imposed without adequate notice or due process.
The dispute comes amid broader tensions between Washington and Beijing, with the Pentagon recently expanding its blacklist to include several major Chinese companies, including Baidu, BYD and Nio. The US Department of Defense has declined to comment on the lawsuit, citing its policy of not discussing ongoing legal proceedings.
The outcome of the case could have significant implications for Alibaba’s operations in the United States and may influence how other Chinese companies challenge similar designations in the future.
