Chinese e‑commerce and technology giant Alibaba has launched a high‑stakes legal challenge against the U.S. government, filing a lawsuit in a California federal court to be removed from the Department of Defense’s 1260H blacklist that claims the firm is linked to the Chinese military.
According to the DoD, Alibaba’s compliance with Chinese technology regulators effectively makes it a branch of the military. In its complaint, Alibaba maintains that the determinations “have no basis in fact or law,” arguing that its business is purely retail and cloud computing.
The blacklist was expanded last month to include other large Chinese tech names such as Baidu, BYD and Nio. It also imposes a severe operational penalty effective 30 June — the Pentagon is legally forbidden from doing business with any blacklisted firm, and any U.S. contractor sharing a lobbyist or law firm with a blacklisted entity faces a de facto blockade.
Alibaba reports that none of its independent board members have military ties, and that all multinational companies operating in China must obey local regulations. It claims that the designation not only stifles its U.S. advisory network but also cuts off a strategic voice in Washington at a crucial time.
The company says it had previously sought a meeting with the DoD to address the military affiliation concerns and offered evidence of its economic contributions in the United States. No further inquiries were made, and the designation occurred without notice or a fair hearing, the complaint argues.
The DoD declined to comment on the matter, stating “We do not comment on ongoing litigation.”
