Alibaba Group Holding Ltd. filed a lawsuit against the U.S. Department of Defense to contest its designation as a Chinese military-linked company. The e-commerce giant seeks removal from the 1260H list, arguing the classification lacks substantial evidence.
Alibaba claims the designation is arbitrary and unjustified. The company maintains its operations focus exclusively on commerce and technology rather than military or intelligence activities.
The 1260H listing became effective in early June. This status prevents Alibaba from securing lucrative Pentagon contracts and creates significant reputational and business risks.