Alibaba is suing the US for being linked to the Chinese military.
The Chinese e-commerce giant has launched legal action against the American government after the Department of Defense placed it on the so-called 1260H list, a blacklist identifying the company as a supporter of Beijing’s military apparatus.
The Pentagon claims that Alibaba contributes to the integration between the civilian sector and defense through ties with the Chinese Ministry of Industry and Information Technology and the State-owned Assets Supervision and Administration Commission (Sasac). On its part, the tech giant based in Hangzhou denies the accusations, stating it is managed by an independent board of directors and that its activities concern e-commerce, logistics, and IT services, not military applications. The company is seeking removal from the list, arguing that the designation is arbitrary and has already caused reputational damage.
Alongside Alibaba, other major Chinese companies appear on the same list, including Baidu, Byd, Nio, and WuXi AppTec, which filed a similar appeal a few days earlier. Chinese tech companies, including Advanced Micro-Fabrication Equipment Inc. and Xiaomi Corp., have managed to remove such designation after suing the Department of Defense.
All the details.
ALIBABA’S LAWSUIT
Alibaba filed the lawsuit in the federal court of San Jose, California, after the Pentagon expanded its blacklist of alleged “Chinese military companies” to 188 entities on June 8, due to concerns that the Chinese military could draw on the country’s private sector for funding.
As detailed by Bloomberg, the company argued that the Pentagon placed it on the list without providing substantial evidence or explanations, violating due constitutional process and its right to free speech.
Alibaba stated that its inclusion on the list prevents it from retaining certain lobbyists and said it learned of its designation by consulting the Federal Register, citing a lack of due constitutional process.
Under the National Defense Authorization Act for fiscal year 2025, the Department of Defense cannot enter into contracts with any entity that engages in lobbying or support activities for Chinese companies on the 1260H list, starting June 30.
THE PENTAGON’S ACCUSATION
According to the Department of Defense, Alibaba contributes “to the military-civil fusion of the Chinese defense industrial base” through an affiliation with the Chinese Ministry of Industry and Information Technology. The Pentagon also stated that Alibaba is indirectly affiliated with the Chinese state asset regulatory authority, known as SASAC.
THE POSITION OF THE CHINESE TECH GIANT
“The determinations have no basis in fact or law,” Alibaba declared.
“Alibaba is governed by an independent board of directors, none of whose members have any military affiliation,” it added. “Its products and services are designed for retail, logistics, and enterprise IT, not for weapons, defense, or intelligence.”
“For many American companies, Alibaba is the main gateway to the Chinese market,” the company continued. “Labeling Alibaba as a ‘Chinese military company’ means considering it a tool of the Chinese military and a threat to US national security. Such designation… directly harms Alibaba’s reputation and casts a shadow over every relationship the company maintains with the United States.”
THE MEASURE ALSO AFFECTED BAIDU, BYD, AND NIO
Among other companies added to the list this month are internet search company Baidu, automakers BYD and NIO, and biotechnology firm WuXi AppTec. WuXi filed a lawsuit similar to Alibaba’s on June 11, reports Reuters.
Other Chinese companies included in the Pentagon’s so-called 1260H list are chip manufacturers ChangXin Memory Technologies Inc. and Yangtze Memory Technologies Co., as well as robotics developer Unitree Robotics, designated as Hangzhou Yushu Technology Co., adds Bloomberg. Last year, Tencent was also placed on the US blacklist.
THE IMPACT
According to US regulations, from June 2027 the federal government will not be able to purchase goods or services, even through intermediaries, from companies included on the list. However, inclusion does not entail direct economic sanctions.
The 1260H designation serves as a warning to US investors and is widely considered an alert that may precede more punitive trade restrictions.
