Alibaba Sues U.S. Over Pentagon Blacklist Allegations

Sun Jul 12 2026 09:32:08 GMT+0000 (Coordinated Universal Time)

Alibaba files a lawsuit in California, claiming it was wrongly added to the Pentagon’s 1260H blacklist with no military ties.

Alibaba Group has taken legal action against the U.S. Department of Defense (DoD), arguing that its inclusion on the 1260H blacklist is unfounded. The company contends that its operations are purely commercial and that no board members have military affiliations. The DoD maintains that compliance with Chinese regulators links Alibaba to China’s defense sector. The lawsuit seeks removal from the blacklist and challenges the DoD’s process.

Alibaba Sues U.S. Over Pentagon Blacklist Allegations

Chinese e-commerce titan Alibaba Group filed a lawsuit in a California federal court on Tuesday, challenging the Department of Defense’s placement of the company on its 1260H blacklist, which claims it is linked to the Chinese military.

The DoD cited Alibaba’s compliance with Chinese technology regulations as evidence that the firm is effectively an arm of the Chinese army. Alibaba argues that no member of its independent board has military ties and that the designation is arbitrary and capricious.

The lawsuit follows an expansion of the Pentagon’s blacklist that now includes other prominent Chinese tech firms such as Baidu, BYD, and Nio. Alibaba’s complaint states that once the 1260H list is enforced on 30 June, the U.S. army will be legally barred from doing business with the company, which could cut off the firm’s advisers from defence contracts.

Alibaba claims the DoD failed to provide any notice or a fair hearing before designating it. The company had previously sought a meeting with the agency to present evidence of its US economic contributions, but the DoD did not object or request additional information.

In its filing, Alibaba demanded the removal from the blacklist and highlighted that the 1260H rule effectively silences its political and legal voice in Washington just as it is needed to defend itself.

The DoD declined to comment on the litigation, stating it does not provide updates on ongoing legal matters.

Updated 6 hours ago, 23 June 2026.