E-commerce giant Alibaba has launched a high-stakes lawsuit against the US government after being added to a Pentagon blacklist of firms with ties to the Chinese military. The blacklist, known as the 1260H list, claims that Alibaba's regulatory ties to Beijing make it an arm of the military.
Alibaba has pushed back against the claim, stating that none of its independent board members have any military affiliation and that every multinational operating in China must follow the same local rules.
The company argues that its platforms are built for retail and cloud computing, not weapons or intelligence, and that the decision to place it on the blacklist is arbitrary and capricious.
The Pentagon's decision to expand the blacklist and include massive tech names like Baidu, BYD, and Nio has significant implications for US companies operating in China. The blacklist triggers a brutal operational penalty and restricts business with US contractors, forcing companies to sever ties to protect their own lucrative defence contracts.
Alibaba's lawsuit claims that the agency did not raise any concerns with the firm nor did it request additional information before designating it on the list. The company is seeking to be removed from the blacklist and to have the restrictions lifted.