Alibaba Sues US Government Over Pentagon's Military Link Allegations

Chinese technology and e-commerce giant Alibaba has launched a large-scale legal action by suing the United States Government. The company filed a lawsuit in a California federal court to have its name removed from a Pentagon blacklist that accuses it of having links to the Chinese military. The US Department of Defense (DoD) previously stated that Alibaba’s compliance with Chinese technology regulators effectively made it an extension of the military. However, in its lawsuit filing, Alibaba strongly denied the claim, stating that the decision “lacks any factual or legal basis”. Alibaba’s inclusion on the blacklist, known as the 1260H list, came after the Pentagon expanded the scope of its sanctions to include several other tech giants such as Baidu, BYD, and Nio. The Pentagon claims these companies contribute to China’s defence industrial base through a military-civil fusion strategy. Alibaba refuted this argument by asserting that none of its independent board members have military affiliations. The company also stressed that every multinational corporation operating in China, including American companies, is required to comply with the same local regulations. “Alibaba is not a Chinese military company nor part of the 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 legal challenge against the Department of War to demand removal from the list,” it added. Although the blacklist does not directly freeze financial assets, the rule triggers severe operational sanctions that come into effect on 30 June. Starting next week, the Pentagon is strictly prohibited from doing business with any blacklisted company. More crucially, the law also applies to any US contractor that shares the same lobbyists or law firms as a blacklisted entity. Alibaba argues this restriction creates a functional blockade, forcing their long-term legal advisors in America to sever the relationship to protect their own lucrative defence contracts. According to the lawsuit documents, Alibaba had previously sought a meeting with the Pentagon to discuss these concerns and present evidence of their economic contributions in the US. However, the agency instead imposed the blacklist status without notification or a fair hearing. Regarding the legal dispute, the US Department of Defense declined to provide further details. “We do not comment on ongoing litigation,” a DoD representative told the BBC.