Alibaba has filed a federal lawsuit demanding removal from the U.S. Department of Defense’s updated 1260 H list. The Pentagon added the e‑commerce giant to the blacklist earlier this month, labeling it a “military‑civil fusion contributor” to China’s defense industrial base. Alibaba denies any ties to the People’s Liberation Army and says the designation lacks legal basis.

Being on the 1260 H list does not trigger automatic sanctions, but it bars the Defense Department from contracting with Alibaba or using its cloud services through third parties. The label also warns U.S. firms that doing business with listed companies could invite trade restrictions. Alibaba argues the blacklist hampers its ability to retain counsel needed to contest the claim.

Alibaba previously opened a dialogue after the Pentagon briefly posted, then removed, a version of the list in February. The company submitted evidence that none of its board members hold military positions and that its platforms serve only commerce and cloud computing. With the lawsuit filed, Alibaba seeks a court order to erase the designation and restore its ability to operate in the U.S. market.