India, June 24 -- Alibaba Group (BABA) has launched a lawsuit against the U.S. Department of Defense, aiming to get off a Pentagon blacklist that marks companies thought to have connections with the Chinese military.

The suit was filed in a federal court in California and disputes Alibaba's listing on the Pentagon's so-called "1260H list," which singles out companies believed to play a role in China's military-civil fusion approach. The Defense Department contends that Alibaba's adherence to Chinese tech regulations ties it to the nation's defense sector.

In response, Alibaba has firmly denied these claims, insisting that the designation is completely unfounded both factually and legally. They emphasize that their business is centered aro...