Alibaba Group, one of China’s largest technology companies, has filed a federal lawsuit against the U.S. Department of Defense, disputing the Pentagon’s recent designation of the company as affiliated with the Chinese military. The legal action was initiated Tuesday in a California federal court.

The Chinese e-commerce giant, which has expanded its business into cloud computing and advanced artificial intelligence development, argued in its suit that it maintains no connections with China’s military forces. Alibaba contended that the Pentagon’s decision to include it on the list of companies supporting the Chinese military lacked legal basis and violated applicable rules.

Earlier this month, the U.S. government added Alibaba to a blacklist of Chinese firms deemed to have ties to the country’s military apparatus. The list also included several other companies recognized as strategically important by China, such as manufacturers in electric vehicles, memory chips, robotics, and pharmaceuticals.

The designation restricts U.S. investment in the affected companies, reflecting heightened concerns within the U.S. government about China’s military modernization and potential risks linked to Chinese corporate entities operating globally. Alibaba’s lawsuit challenges both the factual grounds and the procedural aspects of the Pentagon’s determination.

The development marks a significant escalation in the ongoing tensions between the United States and China over technology competition and national security. Alibaba’s position as a leading player in China’s tech sector adds prominence to the case, which may have broader implications for other Chinese firms facing similar scrutiny. The Pentagon has maintained that its lists are based on intelligence assessments aimed at protecting U.S. national security interests.