Alibaba Sues Pentagon Over Military Company Designation

Alibaba filed a federal lawsuit June 23 against the Department of Defense, challenging its listing as a Chinese military-support company under Section 1260H of the defense law. The designation, issued June 8 alongside BYD and Baidu, applies pressure on U.S. investors and partners to divest or distance themselves from the firm. Alibaba argues commercial scale and regulatory compliance do not constitute military support. The case follows WuXi AppTec's June complaint and marks a shift toward litigation rather than quiet lobbying by Chinese multinationals facing Pentagon designations.