Alibaba files lawsuit against US Pentagon over military blacklist designation
Chinese e-commerce conglomerate Alibaba has initiated legal proceedings against the United States Department of Defense (DoD), challenging its inclusion on a Pentagon blacklist that labels the company as linked to the Chinese military. The lawsuit, filed in a California federal court, contends that the determination is arbitrary and lacks factual or legal basis.
The DoD had placed Alibaba on its 1260H blacklist, which identifies entities deemed as 'military-civil fusion contributors' to China's defence industrial base. The Pentagon cited Alibaba's compliance with Chinese technology regulators as evidence of its military ties. Alibaba refutes this, stating that none of its independent board members have any military affiliation and that it operates as a commercial retail and cloud computing platform, not involved in weapons or intelligence activities.
The legal challenge comes as the Pentagon expanded the blacklist to include other major Chinese technology firms such as Baidu, BYD, and Nio. The blacklist prohibits the Pentagon from doing business with listed companies after 30 June. Crucially, the restriction extends to any US contractor that shares a lobbyist or law firm with a blacklisted entity, effectively blocking Alibaba from engaging with American advisers who hold defence contracts elsewhere.
Alibaba argues that this rule strips it of its political and legal representation in Washington at a critical time. The company had previously sought a meeting with the DoD to present evidence of its economic contributions in the US and address concerns regarding military affiliation. According to the complaint, the DoD did not respond with further inquiries or a hearing before designating Alibaba.
The DoD declined to comment on the ongoing litigation. Alibaba's lawsuit demands removal from the blacklist, asserting that its inclusion was arbitrary and capricious. The case highlights tensions between the US government and Chinese firms operating internationally amidst broader geopolitical friction.
