Alibaba Group Holding Ltd. initiated legal action on Tuesday against the U.S. Department of Defense, asking a federal court in San Jose, California to order its removal from a Pentagon blacklist that labels the company as a supporter of Chinas military. The firm asserts the Defense Department added it to the list without providing significant evidence or an explanation for the designation.
In its complaint, Alibaba argues that the departments inclusion of the company on the so-called 1260H list violates the companys constitutional protections, including due process and free speech. The lawsuit seeks judicial relief to undo the Pentagons determination.
The Defense Department earlier this month accused a group of major Chinese companies of aiding the Peoples Liberation Army, naming Alibaba among them. Other firms listed include Baidu Inc. and BYD Co. The 1260H roster also features semiconductor manufacturers ChangXin Memory Technologies Inc. and Yangtze Memory Technologies Co., along with robotics developer Unitree Robotics, which the Defense Department identified as Hangzhou Yushu Technology Co., Ltd.
The filing notes that Tencent Holdings Ltd., a leading Chinese games and social media company, was added to the list last year. Alibaba says it has repeatedly sought to address the designation with the department, engaging in correspondence and providing materials intended to demonstrate that it does not support the PLA.
Alibaba states that its engagement with the Defense Department stretches back months, at least to February when the department briefly published a version of the blacklist and then removed it minutes later without explanation. According to Alibaba, the company submitted detailed evidence refuting the designation, responded to questions from the department, and provided a written reply, but did not receive a substantive response.
The lawsuit frames the Pentagons actions as procedurally deficient and legally infirm, seeking judicial review and removal from the list. The case now proceeds in the federal court in San Jose, where the company requests the court to evaluate the departments basis for including Alibaba and to direct the department to rescind the designation if it cannot demonstrate adequate justification.
Companies named on the 1260H list as cited in the complaint and related Defense Department announcement:
- Alibaba Group Holding Ltd.
- Baidu Inc.
- BYD Co.
- ChangXin Memory Technologies Inc.
- Yangtze Memory Technologies Co.
- Unitree Robotics (identified as Hangzhou Yushu Technology Co., Ltd.)
- Tencent Holdings Ltd. (added last year)