Alibaba Takes Pentagon to Court Over Military Company Label

Alibaba sued the Department of Defense on June 23 over its military-support designation, issued June 8 under defense law Section 1260H. The label—applied alongside BYD and Baidu—pressures U.S. investors to divest. Alibaba argues its commercial scale and regulatory compliance don't constitute military ties. The lawsuit signals a shift: Chinese firms are now litigating rather than quietly lobbying against Pentagon designations.