Alibaba has taken a bold step by filing a lawsuit in a California federal court to have its name removed from the U.S. Department of Defense’s 1260H blacklist, a list that now includes major Chinese tech firms such as Baidu, BYD, and Nio.
\The DoD claims that Alibaba’s compliance with Chinese technology regulators has made it effectively a part of China’s military‑civil fusion strategy, and labels it a “military‑civil fusion contributor to the Chinese defence industrial base.” Alibaba is counter‑arguing that none of its board members have any military affiliation and that its core businesses are retail and cloud computing, not weapons or intelligence.
\In its complaint, the company says the decision to place it on the 1260H list is “arbitrary and capricious.” Alibaba also points out that the rule will cut off the Pentagon’s ability to do business with the firm from 30 June, and will have a cascading effect on U.S. contractors that share lobbyists or law firms with Alibaba, potentially forcing those contractors to sever ties due to the law’s restrictions.
\Albeit the blacklist does not block Alibaba’s finances outright, the law’s operational penalties will trigger on 30 June. The company claims it previously requested a dialogue with DoD officials to address concerns, and presented evidence of its U.S. economic contributions, yet the agency either did not respond or requested no additional information, leading Alibaba to label the designation a “designation without notice or a fair hearing.”
\The U.S. Department of Defense declined to comment, stating that it does not comment on ongoing litigation.
\Bottom line: Alibaba seeks judicial relief to clear its name from a list that threatens its U.S. business relationships and could hamper its ability to defend itself during a critical 30‑June deadline.
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