Alibaba has accused US of making baseless allegations after being added to a list of companies allegedly connected to China’s military establishment
Chinese technology and e-commerce giant Alibaba has filed a lawsuit against the United States government after being placed on a Pentagon list of companies alleged to have links with China’s military.
The lawsuit was filed on Tuesday in a federal court in San Jose, California, challenging the US Department of Defense‘s decision to include Alibaba on its blacklist of so-called “Chinese military companies.”
Alibaba challenges Pentagon designation
The Pentagon expanded its blacklist on June 8, increasing the number of designated entities to 188 amid growing US concerns over China’s military-civil fusion strategy, which seeks to leverage private-sector innovation for defence and military purposes.
Alibaba was designated as a “military-civil fusion contributor to the Chinese defence industrial base” due to what the Pentagon described as links with China’s Ministry of Industry and Information Technology and indirect affiliations with the State-owned Assets Supervision and Administration Commission (SASAC).
Rejecting the allegations, Alibaba said the designation was unsupported by facts or law.
“The determinations have no basis in fact or law,” the company said in its court filing.
Alibaba argued that it is governed by an independent board and that none of its directors have military affiliations. The company maintained that its operations are focused on e-commerce, logistics and enterprise technology rather than defence or intelligence activities.
Seeks removal from blacklist
Through the lawsuit, Alibaba is seeking removal from the Pentagon’s blacklist, claiming the designation has already caused significant reputational damage.
The company said being labelled a military-linked enterprise could undermine its relationships with American businesses and partners.
“For many American businesses, Alibaba is the principal gateway to the Chinese market,” the company argued, adding that the designation unfairly portrays it as a threat to US national security.
The Pentagon declined to comment on the case, citing its policy of not discussing ongoing litigation.
Wider impact of Pentagon list
While inclusion on the blacklist does not amount to formal sanctions, recent US legislation prohibits the Pentagon from entering into contracts with listed companies from this month onward. Restrictions on procuring products and services from such firms through third parties are scheduled to take effect in 2027.
Several other Chinese companies were also added to the list in June, including internet giant Baidu, electric vehicle manufacturers BYD and NIO, and biotechnology company WuXi AppTec.
WuXi AppTec has similarly challenged its designation in court, filing a lawsuit against the US government earlier this month.
The legal battle highlights escalating tensions between Washington and Beijing over technology, national security and the role of Chinese companies in strategic industries.
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