Alibaba sues Pentagon over blacklist designation

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Washington DC: Alibaba has filed a federal lawsuit against the US Defense Department to contest its designation as a military-linked firm. The lawsuit, filed in San Jose, calls the Pentagon's decision to include the company on a recent blacklist ‘arbitrary and capricious’ and lacking any basis in fact or law.

The company firmly denies being part of any Chinese military-civil fusion strategy. It highlights its status as a publicly traded e-commerce and cloud provider. Notably, major American financial institutions such as JPMorgan, Citigroup, and BlackRock are among its dominant shareholders.

The designation, effective June 30, prevents the Pentagon from signing new contracts with the firm. It also restricts Alibaba's ability to retain US lobbyists, which the lawsuit claims violates First Amendment rights.

The company reports that long-time advocates have already begun withdrawing their representation. This legal battle follows the blacklisting of 80 companies, including Baidu and BYD.