Alibaba Sues US Govt Over Pentagon Military Blacklist
Photo: REUTERS
Alibaba, the Chinese e-commerce and technology titan, has launched a major legal challenge against the United States government to contest its inclusion on a Pentagon blacklist.
US Department of Defense (DoD) recently designated the firm as having links to the Chinese military, a move Alibaba claims is entirely unfounded.
DoD placed Alibaba on the 1260H list, labeling the company a “military-civil fusion contributor to the Chinese defence industrial base” due to its regulatory relationship with Beijing. This expansion of the blacklist also targets other prominent tech entities, including Baidu, BYD, and Nio.
Alibaba pushed back in a lawsuit filed in a California federal court, asserting that the Pentagon’s determinations “have no basis in fact or law.”
The company highlights that its independent board members possess no military affiliations and that its primary operations focus on retail and cloud computing rather than weapons or intelligence.
A spokesperson for Alibaba told the BBC, “Alibaba is not a Chinese military company nor part of any military-civil fusion strategy.”
The firm further noted that every multinational in China, including American companies, must follow identical local regulations. “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 company added.
The blacklist carries heavy operational penalties set to take effect on 30 June. Starting next week, the Pentagon faces a legal ban on doing business with any blacklisted firm.
Restrictions also extend to US contractors who share lobbyists or law firms with Alibaba. The company argues this creates a “functional blockade,” forcing its long-term American advisers to sever ties to protect their own defense contracts.
According to the legal complaint, Alibaba previously attempted to address these concerns by requesting a meeting with the DoD and offering evidence of its US economic contributions.
However, the tech giant alleges the agency “designated Alibaba without notice or a fair hearing” without ever requesting additional information.
When asked for a response, the DoD declined to discuss the specifics of the case. A spokesperson told the BBC, “We do not comment on ongoing litigation.”
Source: BBC (adapted)
