Chinese e-commerce giant Alibaba has filed a lawsuit against the US government after the Department of Defense added the company to an updated list of firms believed to be linked to the Chinese People's Liberation Army. According to Bloomberg and the BBC, Alibaba is seeking removal from the Pentagon blacklist, arguing that its inclusion has no basis in fact or law and violates its right to free speech and constitutional due process.
The Pentagon's 1260H list and allegations against Alibaba
The Defense Department released the updated 1260H list earlier this month, which now includes internet services provider Baidu, often considered China's counterpart to Google. The rationale given is that Alibaba is a "military-civil fusion contributor to the Chinese defense industrial base" due to its regulatory ties to Beijing. Alibaba has strongly denied any support for the Chinese military, emphasizing that none of its board members have military affiliations and that its platforms were created solely for e-commerce and cloud computing, not for weapons or intelligence operations.
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Economic consequences for the Chinese giant
Being on the 1260H list does not automatically impose sanctions, but it prevents the Defense Department from doing business with the company or using its products and services through third parties. Other companies may also view the listing as a red flag, potentially facing trade restrictions from the US government if they deal with listed firms. According to Alibaba, the designation even hinders its ability to retain lawyers to challenge the label. The company had opened a dialogue with the US government after the Pentagon briefly posted and then withdrew a version of the list in February, presenting evidence of its non-involvement with the military, but received no response. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," the company told the BBC. "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."
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This legal action comes amid escalating US-China tensions in the technology sector. Recently, the White House drastically shortened the deadline for quantum-safe cryptography, another sign of the US government tightening controls over technologies deemed sensitive for national security. Alibaba aims to prove in court that its inclusion in the list is unfounded and seeks damages for the harm suffered. According to experts, Alibaba is an e-commerce behemoth with a market capitalization of hundreds of billions of dollars, and this legal battle could have significant repercussions on bilateral trade relations.
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Source: https://www.engadget.com/2200406/alibaba-sues-us-government-chinese-military-blacklist
