Alibaba sues US government over defence blacklist
Chinese e-commerce giant Alibaba has filed a lawsuit against the US government to be removed from a Pentagon blacklist that labels it a military-civil fusion contributor. The company denies any ties to the Chinese military.
Chinese 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 US Department of Defense (DoD) has placed Alibaba on the so-called 1260H list, designating it as a "military-civil fusion contributor to the Chinese defence industrial base" due to its regulatory ties to Beijing. Alibaba counters that the determinations "have no basis in fact or law" and filed the lawsuit in a California federal court.
The Pentagon recently expanded its blacklist, adding major tech names like Baidu, BYD, and Nio. Alibaba argues that none of its independent board members have any military affiliation. It notes that every multinational operating in China, including American firms, must follow the same local rules. The company states that its platforms 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.
While the blacklist does not freeze finances immediately, it triggers a significant operational penalty starting June 30. From next week, the Pentagon is legally banned from doing business with any blacklisted firm, and this restriction extends to any US contractor sharing a lobbyist or law firm with a blacklisted entity. Alibaba argues this creates a functional blockade, forcing its long-term American advisers to sever ties to protect their own defence contracts. This effectively strips the company of its political and legal voice in Washington at the moment it needs to defend itself.
According to the complaint, Alibaba previously sought a meeting with the agency to address concerns about Chinese military affiliation and presented evidence of its US economic contributions. However, even after submissions, the agency did not raise concerns or request additional information, instead "designated Alibaba without notice or a fair hearing". The DoD declined to comment, stating, "We do not comment on ongoing litigation."
