Alibaba has launched a legal challenge against the U.S. government after the Defense Department added it to a list of companies said to be tied to China’s People’s Liberation Army. Reuters reported that the e-commerce and cloud giant filed suit to have its name removed from the so-called 1260H list, arguing the designation was made without any factual or legal basis and violates its constitutional rights.
The dispute follows an updated Pentagon release earlier this month that also included Baidu, the Chinese internet and search company often compared with Google. The Defense Department said Alibaba was a contributor to China’s military-civil fusion effort within the country’s defense industrial base, citing its regulatory ties to Beijing. Although placement on the 1260H list does not automatically trigger sanctions, it bars the Pentagon from buying Alibaba products or doing business with the company, including through third parties, and can also warn other firms of possible U.S. trade or regulatory consequences.
Alibaba said it had already tried to engage with U.S. officials after a brief version of the list published in February included its name before it was removed. Bloomberg reported that the company submitted documents and evidence to show it does not aid the Chinese military, but says it received no response from authorities. The company flatly rejects the allegation that it supports military activity.
Alibaba said none of its board members has military ties and that its platforms are used only for online commerce and cloud services, not for military, intelligence, or weapons development. It told the BBC, “Alibaba is not a Chinese military company and is not part of the military-civil fusion strategy.” The company said the decision to include it was “arbitrary and unreasonable,” and asked the court to order its removal from the list.
