Chinese technology and e-commerce giant Alibaba filed a lawsuit against the U.S. government on Tuesday challenging its designation on a Department of Defense list of companies linked to the Chinese military. The legal action was initiated in a federal court in San Jose, California, following the Pentagon’s expansion on June 8 of its blacklist to include 188 Chinese entities alleged to have ties to the country's military.
The Department of Defense identified Alibaba as a contributor to China's military-civil fusion strategy through its association with the Ministry of Industry and Information Technology. Additionally, the Pentagon asserted that Alibaba maintains indirect affiliations with the State-owned Assets Supervision and Administration Commission (SASAC), China’s state asset regulator. The expanded list also includes firms such as internet search giant Baidu, automakers BYD and NIO, and biotechnology company WuXi AppTec.
Alibaba strongly disputed the allegations, stating that the designations are baseless both legally and factually. The company emphasized that it operates under an independent board, none of whose members have military connections. Alibaba further asserted that its core offerings focus on retail, logistics, and enterprise information technology sectors, rather than defense or intelligence-related activities.
The suit seeks to have Alibaba removed from the Department of Defense’s list. Under recent U.S. legislation, companies identified on this list face prohibitions on entering contracts with the Pentagon starting this month, with restrictions extending to procurement of their products or services through third parties beginning in 2027. However, inclusion on the list does not equate to formal sanctions imposed by the U.S. government.
Similar legal challenges have emerged from other Chinese firms affected by the Pentagon’s designation. Notably, WuXi AppTec initiated a comparable lawsuit shortly after the list’s expansion. The Pentagon declined to comment on Alibaba’s lawsuit, citing policies against discussing ongoing litigation.
The move underscores growing tensions between the United States and China regarding national security concerns and the broader competition in technology and defense sectors. The U.S. government has expressed apprehension that China’s military might leverage private sector advancements to strengthen its defense capabilities, prompting increased scrutiny of Chinese companies operating globally.