Alibaba has filed a lawsuit against the US government following its addition to the Department of Defense’s updated list of companies allegedly linked to the Chinese People’s Liberation Army. The company argues that its inclusion lacks “basis in fact or law” and infringes on its rights to free speech and due process, according to statements reported by Bloomberg and the BBC.
The updated 1260H list, released by the Pentagon, also includes the internet services provider Baidu. The Defense Department classified Alibaba as a “military-civil fusion contributor to the Chinese defense industrial base” due to its ties to regulatory authorities in Beijing.
Inclusion on the 1260H list does not automatically impose sanctions but prohibits the Defense Department from conducting business with Alibaba or using its products through third parties. Other companies might be deterred from collaborating with firms on the list due to potential trade restrictions, Alibaba noted.
Alibaba claims that the designation impedes its ability to engage legal counsel necessary to contest its classification. The company previously attempted dialogue with the US government after a version of the blacklist that included its name was briefly published in February and then removed.
According to reports, Alibaba presented evidence demonstrating that it does not support the Chinese military but received no response from the Defense Department. The company emphasized that none of its board members have military affiliations and that its platforms are intended for e-commerce and cloud computing, not military use. “Alibaba is not a Chinese military company nor part of any military-civil fusion strategy,” it stated. “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.”
