Alibaba sued the US Department of Defense in federal court in San Jose, California, on June 23.

The lawsuit is over its addition to the Pentagon’s 1260H list of companies alleged to support China’s military.

The complaint said the Pentagon added Alibaba without substantial evidence or explanation. Alibaba also said it learned of the designation through the Federal Register.

The 1260H list, created under the fiscal year 2021 defense law and updated annually, can have effects beyond reputational damage, including risks for Pentagon contracts and export controls.

Earlier executive orders also linked related Chinese military company designations to US securities trading restrictions.

Similar court fights have exposed weaknesses in past designations. Xiaomi won a 2021 preliminary injunction after a judge found insufficient evidence.

🔗 Source: Bloomberg

Recent Alibaba developments