Chinese giant Alibaba has filed a lawsuit in California federal court against the United States government. This legal action follows the Department of Defense’s decision to blacklist the company.
This liste 1260H lists companies allegedly affiliated with the Chinese military. Alibaba, which works in AI (Qwen models) in addition to e-commerce, strongly denies such an allegation and demands its immediate removal from the list.
What is the Pentagon’s justification?
The United States Department of Defense accuses Alibaba of being a contributor to the China’s civil-military fusion.
This assertion is primarily based on the company’s regulatory ties with China’s Ministry of Industry and Information Technology, an obligation for any multinational operating in the country.
Other leading Chinese technology companies like Baidu, as well as automobile manufacturer BYD, have also been added to this famous 1260H list. Also targeted, the biotechnology group WuXi AppTec initiated legal proceedings similar to those of Alibaba.
The arguments put forward by Alibaba in its defense
In its complaint, Alibaba insists that these accusations ” have no basis in fact or law “.
The company highlights the independence of its board of directors, specifying that none of its members has the slightest military affiliation. The company claims to have presented substantial evidence to the Pentagon, but has received no response.
” Our products and services are designed for retail, logistics and enterprise IT, not for weapons, defense or intelligence. “Alibaba deplores a decision taken without notice or a fair hearing, despite its attempts to engage in dialogue.
What are the consequences of this blacklist?
Although blacklisting does not result in direct financial penalties, there are repercussions.
Starting later this month, the Pentagon will be banned from contracting with any company on the list. This restriction extends to third parties who work with these companies.
Alibaba maintains that the measure causes it a irreparable harmnot only by blocking his business relationships, but also by preventing him from retaining legal advisors to defend himself.
The group denounces a designation which assimilates it to a ” chinese army instrument “and one” threat to American national security “, directly affecting its worldwide reputation.
