BEIJING (dpa-AFX) - Alibaba Group (BABA) has launched a lawsuit against the U.S. Department of Defense, aiming to get off a Pentagon blacklist that marks companies thought to have connections with the Chinese military.
The suit was filed in a federal court in California and disputes Alibaba's listing on the Pentagon's so-called '1260H list,' which singles out companies believed to play a role in China's military-civil fusion approach. The Defense Department contends that Alibaba's adherence to Chinese tech regulations ties it to the nation's defense sector.
In response, Alibaba has firmly denied these claims, insisting that the designation is completely unfounded both factually and legally. They emphasize that their business is centered around e-commerce and cloud services, with no ties to the Chinese military.
Moreover, they pointed out that all multinational companies operating in China, including those from the U.S., are subject to the same regulatory standards.
This legal dispute follows the Pentagon's decision to broaden its blacklist, which now includes several prominent Chinese companies like Baidu, BYD, and Nio.
Starting June 30, U.S. defense agencies will be barred from engaging with firms on the blacklist. Alibaba argues that these restrictions could compel U.S. contractors, lobbyists, and law firms to cut ties with them, greatly impacting their ability to function and represent their interests in Washington.
The Department of Defense has chosen not to comment on the ongoing litigation.
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