Alibaba Sues to Expunge Pentagon 1260H Blacklist Before June 30 Contract Ban
BABA•Alibaba filed a federal lawsuit in San Jose federal court challenging its inclusion on the Pentagon’s 1260H blacklist, arguing the designation is “arbitrary and capricious” and violates due process and First Amendment protections. The action precedes a June 30 contract ban and 2027 restrictions on purchases from listed firms.
1. Federal Lawsuit Filing
On June 24 Alibaba filed a complaint in U.S. District Court in San Jose naming the Department of Defense and Secretary Pete Hegseth as defendants. The suit seeks removal from the Pentagon’s 1260H list of Chinese military-affiliated companies, asserting the label was imposed without factual or legal support.
2. Company’s Legal Arguments
Alibaba contends the blacklist designation is “arbitrary and capricious,” violates constitutional due process and First Amendment rights, and mischaracterizes routine interactions with China’s Ministry of Industry and Information Technology as military affiliation. The complaint notes that Alibaba provided detailed evidence of non-PLA involvement but received no response before publication in the Federal Register.
3. Practical Implications and Timeline
Under U.S. law, the Pentagon must cease contracts with listed firms by June 30 and third-party purchase bans follow in 2027, while lobbying on behalf of blacklisted companies is also prohibited. Similar legal challenges by Xiaomi and Advanced Micro-Fabrication Equipment led to removals, and the 1260H roster has grown to 188 entities, prompting Beijing to announce export controls targeting ten U.S. defense and rare-earth firms.
