Alibaba sues Pentagon over blacklist decision

Alibaba Group on June 23 filed a federal lawsuit challenging the U.S. Defense Department’s designation of the Chinese technology giant as a “Chinese military company,” arguing the labeling is arbitrary and lacks due process.

The lawsuit, filed Monday in San Francisco federal court, contests the Pentagon’s determination that Alibaba qualifies for inclusion on the federal military company list.

“The determinations have no basis in fact or law,” the complaint states.

The Pentagon on June 8 released the new blacklist of 80 companies and their subsidiaries it said were aiding the Chinese military.