Alibaba sues U.S. Pentagon over military blacklist

• Alibaba Group Holding (NYSE:BABA) filed a federal lawsuit against the U.S. Department of Defense seeking removal from a military-linked company list.
• The company claims its inclusion on the Pentagon’s 1260H list is “arbitrary and capricious” and violates due process rights.
• The lawsuit follows similar legal challenges by other Chinese firms previously removed from the list through court action.

Alibaba Group Holding (NYSE:BABA) has filed a federal lawsuit in San Jose, California, against the U.S. Department of Defense, challenging its designation on a list of companies alleged to have ties to China’s military.

The company argues that its inclusion on the Pentagon’s 1260H list was made without sufficient justification and violates constitutional protections, including due process and First Amendment rights.

Alibaba said it had attempted for months to engage with the Defense Department, providing evidence to dispute the designation, but did not receive a response before learning of the listing through public disclosure.

The Pentagon has not commented on the lawsuit, while the designation could restrict future contracting opportunities and affect business relationships involving U.S. government-linked entities.

The case follows previous legal challenges from other Chinese firms, including Xiaomi and semiconductor equipment makers, which successfully secured removal from the same list through litigation.