Alibaba challenges US Defense Department over military-linked blacklist
The Chinese tech firm has filed a lawsuit against the Pentagon to remove it from the 1260H list, citing due process violations and the chilling effect on its ability to retain legal counsel.
Alibaba has initiated legal proceedings against the US Department of Defense to challenge its inclusion on the updated 1260H list, which identifies firms connected to the Chinese People’s Liberation Army. The e-commerce and cloud computing giant argues that the designation is arbitrary, lacks factual or legal basis, and violates its constitutional rights to due process and free speech. Alibaba explicitly denies supporting the Chinese military or engaging in 'military-civil fusion', asserting its platforms are exclusively commercial.
The lawsuit, filed after the Department of Defense added Alibaba to the list earlier this month, seeks the removal of the company from the blacklist. According to reports from Bloomberg and the BBC, Alibaba contends that the listing has no basis in fact or law. The firm stated that the decision was "arbitrary and capricious" and is suing the Department of War, as referenced in its legal filings, to demand removal. The company also highlighted that the designation hinders its ability to retain legal counsel to challenge the label.
Inclusion on the 1260H list does not automatically impose sanctions but restricts US government procurement. The listing prohibits the Defense Department from doing business with Alibaba or using its products and services through third parties. Furthermore, the designation serves as a significant red flag for other businesses, potentially leading to broader trade restrictions if they engage with the listed firms. Alibaba argues that this environment is deterring potential partners and lawyers from working with the company.
The updated list also includes internet service provider Baidu, often described as the Chinese counterpart to Google. The Pentagon designated Alibaba as a "military-civil fusion contributor to the Chinese defense industrial base," citing its regulatory ties to Beijing. Alibaba has denied that any of its board members has military affiliation and stressed that its platforms were created for e-commerce and cloud computing only, not for weapons or intelligence operations.
This legal action follows a previous period of dialogue with the Pentagon after a version of the blacklist was briefly posted and then removed in February. Alibaba reportedly opened dialogue with the agency and submitted evidence to demonstrate it was not supporting the Chinese military, but the agency did not reply. The firm maintains that it is not part of any military-civil fusion strategy and that its platforms are solely for commercial use.
