Alibaba has filed a lawsuit against the U.S. government after the Pentagon blacklisted the company, alleging links to the Chinese military. The company counters that these claims are baseless and that it has not been fairly considered.
On 24 June 2026, Alibaba, the Chinese e-commerce and technology giant, filed a lawsuit against the U.S. government in a federal court in California to challenge its blacklisting by the U.S. Department of Defense (Pentagon), stating the decision lacks factual basis and is unlawful.
Previously, the U.S. Department of Defense placed Alibaba on the so-called “1260H list,” citing the company’s connection to the Chinese military through the concept of "military-civil fusion," since the company must comply with Chinese government regulations.
The U.S. has argued that compliance with Chinese technology regulatory rules makes Alibaba part of a structure linked to the military. The blacklist has also extended to other major tech firms such as Baidu, BYD, and Nio.
Alibaba responded by stating it has no association with the Chinese military and that no board members have military ties. The company emphasized its business focuses on e-commerce and cloud computing, not military or intelligence activities, and described the U.S. decision as arbitrary and unfair. It confirmed that the lawsuit aims to have its name removed from the blacklist.
Although blacklisting does not immediately freeze assets, it will impact business starting 30 June, when Pentagon agencies will be prohibited from transacting with all companies on the list, including restrictions affecting contractors involved with these companies.