Chinese technology conglomerate Alibaba has filed a federal lawsuit against the United States Department of Defense (DoD), challenging its inclusion on a blacklist that designates companies as linked to the Chinese military. The lawsuit, filed on Tuesday in a San Jose, California federal court, disputes the Pentagon’s decision to add Alibaba to its roster of firms it claims contribute to China’s military capabilities.
The Pentagon’s expanded list, released earlier this month, now includes 188 firms suspected of military affiliation, up from 134 the previous year. Alongside Alibaba, other notable additions include Baidu, BYD, Nio, and WuXi AppTec. The DoD describes the list under Section 1260H of the 1999 National Defense Authorization Act and has conveyed concerns that these companies are involved in China’s military-civil fusion strategy, a policy that integrates civilian and military sectors to advance national defense.
Alibaba strongly denies the allegations, asserting in its legal complaint that the designation lacks factual and legal foundation. The company states it is publicly traded with significant ownership by major American financial institutions such as JPMorgan, Citigroup, and BlackRock. Alibaba emphasizes its core operations focus on e-commerce, cloud computing, logistics, and enterprise technology services, distancing itself from military or defense-related activities. A company spokesperson noted that Alibaba’s governance includes an independent board with no military affiliations and that it is not part of any military-civil fusion initiative.
The lawsuit further contends that the listing carries immediate practical repercussions, including the Pentagon’s prohibition on new contracts with listed companies starting June 30, as well as restrictions on Alibaba’s ability to retain lobbying firms in the United States. Alibaba argues this restriction violates its First Amendment rights, citing that its longstanding lobbyists have withdrawn their representation in light of the designation.
The dispute emerges amid broader tensions between the United States and China, especially concerning technology competition and national security. In response to the blacklist expansion, China announced on Monday export controls targeting 10 U.S. companies involved in defense and rare earth mining sectors.
The Pentagon has linked Alibaba to China’s Ministry of Industry and Information Technology (MIIT), characterizing the company as a contributor to the Chinese defense industrial base. Alibaba counters that compliance with Chinese regulatory requirements, which apply to all multinational corporations operating in China, should not be interpreted as military affiliation.
This legal challenge represents a continuation of ongoing frictions between the two global powers following efforts by President Donald Trump and Chinese President Xi Jinping to stabilize their countries’ relationship during a meeting last month in Beijing. The case will test how the U.S. judiciary addresses contested allegations regarding the intersection of commercial enterprises and national security concerns.