Chinese tech giant Alibaba has sued the U.S. Department of Defense, demanding that the company’s name be removed from the military-related list.
According to Bloomberg, Alibaba stated in its complaint filed on Tuesday that the U.S. Department of Defense neither provided sufficient evidence nor a reasonable explanation when it included Alibaba on a list of companies allegedly supporting China’s People’s Liberation Army.
Alibaba said in the complaint submitted to the federal court in San Jose, California, that this decision violates the due process principle prescribed by the U.S. Constitution and also infringes on the company's freedom of speech rights.
Earlier this month, the U.S. Department of Defense accused several major Chinese companies, including Alibaba, Baidu, and BYD, of providing support to the PLA. Other Chinese companies added to the 1260H list include Changxin Memory, Yangtze Memory, and robotics developer Unitree Robotics.
Chinese internet giant Tencent Holdings was added to the same list last year.
Although being listed does not bring about significant legal consequences immediately, the U.S. Department of Defense is increasingly using this list to restrict related companies from signing contracts with the U.S. military or obtaining research funding. Being named to the 1260H list is also regarded as a warning signal to U.S. investors, and is often seen as a precursor to the possibility of facing stricter trade restrictions in the future.