Chinese technology 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 federal court in San Jose, California, following the U.S. Department of Defense’s decision to expand its list of alleged Chinese military companies to 188 entities earlier this month. The blacklist is part of ongoing U.S. efforts to address concerns that China’s military could benefit from technologies and innovations developed by private companies.
The Pentagon accused Alibaba of contributing to China’s military-civil fusion strategy through ties to China’s Ministry of Industry and Information Technology. It also claimed the company has indirect links to China’s state-owned assets regulator, known as SASAC.
Alibaba strongly rejected the allegations, saying the designation has no factual or legal basis. The company stated that it is governed by an independent board and that none of its board members have military affiliations.
According to the lawsuit, Alibaba’s products and services are focused on e-commerce, logistics, cloud computing, and enterprise technology rather than military, defense, or intelligence operations.
The company is asking the court to order its removal from the Pentagon’s blacklist.
While being placed on the list does not trigger formal sanctions, recent U.S. legislation prevents the Pentagon from contracting with listed companies beginning this month. The restrictions will expand further in 2027, when the Defense Department will be prohibited from purchasing products or services from listed firms through third-party suppliers.
Several other Chinese companies were also added to the list this month, including internet search giant Baidu, electric vehicle manufacturers BYD and NIO, and biotechnology company WuXi AppTec. WuXi AppTec previously filed a similar lawsuit challenging its designation.
Alibaba argued that the Pentagon’s decision was arbitrary and has already caused significant reputational damage. The company said many American businesses rely on Alibaba as a gateway to the Chinese market and that labeling it a Chinese military company unfairly portrays it as a threat to U.S. national security.
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The Pentagon declined to comment on the case, citing its policy of not discussing ongoing litigation.
