Chinese e-commerce giant Alibaba sues US government over defence blacklist

"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," it added.While the blacklist does not freeze finances immediately, it triggers a brutal operational penalty on 30 June. Starting next week, the Pentagon is legally banned from doing business with any blacklisted firm. Crucially, the law also extends to any US contractor that shares a lobbyist or law firm with a blacklisted entity. In Alibaba's case, the company argues that this restriction creates a functional blockade, forcing its long-term American advisers to sever ties to protect their own lucrative defence contracts. The rule effectively strips the company of its political and legal voice in Washington at the exact moment it needs to defend itself. According to the complaint, Alibaba had previously asked to meet with the agency to address the Chinese military affiliation concerns, which included presenting evidence of its US economic contributions. However, the tech giant says that even after its submissions, the agency did not raise any concerns with the firm nor did it request additional information. Rather, it "designated Alibaba without notice or a fair hearing", the compliant notes.