Alibaba Sues US Government Over Pentagon Blacklisting

Chinese e-commerce giant Alibaba is suing the US government after the Department of Defense placed it on a list of companies allegedly linked to China’s military. Technology publication Engadget reported on Wednesday, citing Bloomberg and the BBC, that Alibaba filed the lawsuit to be removed from the Pentagon’s blacklist. Alibaba argues that its inclusion on the Department of Defense’s 1260H list lacks legal and factual basis and violates its rights to free speech and due process. The Department of Defense claims Alibaba contributes to the civil-military integration supporting China’s defence industry due to its regulatory ties with the Chinese government. Companies on the list are not automatically sanctioned. However, the Department of Defense can no longer engage in business or use products and services from listed companies, even through third parties. Furthermore, other companies may avoid dealing with listed firms for fear of facing trade restrictions or other consequences from the US government. Alibaba stated that the listing also hinders its ability to hire law firms to help challenge the designation. According to Bloomberg, Alibaba submitted evidence showing it does not support Chinese military activities, but the Department of Defense did not respond. Alibaba denies any of its board members have military affiliations and insists its platforms were developed for e-commerce and cloud computing, not military or intelligence operations. ‘Alibaba is not a Chinese military company and is not part of any military-civil fusion strategy,’ the company told the BBC. The company described the Pentagon’s decision to include Alibaba on the 1260H list as arbitrary and unfounded, prompting the lawsuit to have its name removed.