Alibaba sued Pentagon over blacklist tied to China military claims
What's next: A June 30 contracting ban could cut off Alibaba's US advisers and lobbyists if it stays on the 1260H list.
Alibaba filed suit in federal court in California to force the US Department of Defense to remove it from a Pentagon blacklist that labels the company a Chinese military-linked business. The company challenged its placement on the 1260H list after the Defense Department said Alibaba's compliance with Chinese technology rules made it part of a military-civil fusion effort. Alibaba argued the designation lacked factual and legal basis, saying its business centers on retail and cloud computing and that its independent board has no military ties. The company also said the department placed it on the list without notice or a fair hearing. The dispute carries a near-term cost: from June 30, the Pentagon is barred from doing business with listed firms.