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Alibaba files a lawsuit against the U.S. Department of Defense- Global Times

E-commerce giant Alibaba has filed a lawsuit against the U.S. Department of Defense, challenging its "groundless" the so-called 1260H list of Chinese military companies Global Times reported. Chinese experts have dismissed Washington's blacklisting scheme as a politically motivated farce that distorts global trade and violates the principles of a market economy.

In a statement to the on Wednesday, an Alibaba spokesperson said: "Alibaba is not a Chinese military company nor part of any military-civil. The decision to place Alibaba on the 1260H list is arbitrary and capricious, and we are filing a lawsuit against the Department of Defense to demand our removal from the list."

The legal action comes after the U.S. Department of Defense earlier this month expanded its list of entities it designates as Chinese military companies under Section 1260H of the National Defense Authorization Act. Major Chinese technology and manufacturing firms—including Alibaba, BYD, Nio, CALB Group, and Unitree Robotics—were added to the list Global Times reported.

Alibaba emphasized the potential damage to its international reputation and business relationships. "For many American businesses, Alibaba is the principal gateway to the Chinese market," the company said in a press release. The designation, it added, "directly impugns Alibaba's reputation and casts a shadow over every US relationship the company maintains."

Other companies added to the list this month, including BYD, Baidu, and WuXi AppTec, have also publicly rejected their inclusion, calling the designations baseless and factually inaccurate. WuXi AppTec has filed a lawsuit similar to Alibaba's, challenging its placement on the list.

The 1260H list, originally created Chinese companies with alleged ties to the People's Liberation Army, has drawn criticism from both Chinese and international observers. Critics argue that the list is being used as a tool of economic targeting leading Chinese companies that have no meaningful connection to China's military. The expanding designations threaten to disrupt supply chains, damage cross-border trade, and escalate tensions between the world's two largest economies.

Chinese experts note that the U.S. government's actions undermine the very rules-based international order it claims to uphold, and they warn that further politicization of trade could lead to retaliatory measures and long-term harm to global commerce.