Chinese technology and e-commerce giant Alibaba has filed a lawsuit against the U.S. government after being added to a Pentagon list of companies allegedly linked to China’s military.
The lawsuit was filed in a federal court in San Jose, California, following the U.S. Department of Defense’s decision to expand its blacklist of alleged Chinese military-linked companies to 188 entities.
According to the Pentagon, Alibaba was designated as a “military-civil fusion contributor” to China’s defence industrial base through an alleged affiliation with China’s Ministry of Industry and Information Technology. U.S. authorities also cited alleged indirect links to China’s state asset regulator, SASAC.
However, Alibaba strongly rejected the allegations, insisting that the designation has no factual or legal basis.
“The determinations have no basis in fact or law,” the company stated.
Alibaba further argued that it is governed by an independent board and that its operations focus on retail, logistics, cloud computing, and enterprise technology rather than military or defence-related activities.
“Alibaba is governed by an independent board, none of whom has any military affiliation,” the company said.
The company is seeking a court order to remove its name from the Pentagon’s blacklist.
A Pentagon spokesperson declined to comment on the matter, citing the ongoing legal proceedings.
Under recent U.S. legislation, the Pentagon is prohibited from entering into contracts with companies included on the blacklist, while government purchases involving their products or services through third parties will also be restricted beginning in 2027.
Although inclusion on the list does not amount to formal sanctions, Alibaba argues that the designation has already caused significant reputational damage.
The company said being labelled a Chinese military company creates the impression that it poses a threat to U.S. national security and could negatively affect its relationships with American businesses.
Several other major Chinese firms were also added to the list, including Baidu, BYD, NIO, and WuXi AppTec. WuXi AppTec has already filed a similar lawsuit challenging its designation.
The case is expected to add another chapter to the ongoing tensions between the United States and China over technology, trade, and national security concerns.
Source: Reuters
