Key facts
- Alibaba Group Holding has sued the U.S. Department of Defense.
- The lawsuit challenges Alibaba's designation as a company with alleged ties to the Chinese military.
- Alibaba argues the designation lacks factual or legal basis and violates its rights.
- The company seeks removal from the Pentagon's blacklist.
- The Pentagon's designation bars companies from U.S. defense contracts starting in June 2027.
- Other major Chinese tech firms like Baidu, BYD, and NIO were also added to the list.
Alibaba, the Chinese technology and e-commerce giant, has sued the U.S. government over its placement on a list of businesses linked to China's military. The complaint, filed in federal court in San Jose, California, argues the designation lacks factual or legal basis and violates the company's rights. The Pentagon expanded its blacklist of alleged 'Chinese military companies' to 188 entities on June 8, citing concerns that China's military could leverage the private sector for advancements. Alibaba was specifically accused of being a 'military-civil fusion contributor to the Chinese defense industrial base' through an affiliation with China's Ministry of Industry and Information Technology, and indirectly with China's state asset regulator, SASAC. Alibaba stated its independent board has no military affiliation and its services are for retail, logistics, and IT, not weapons. The lawsuit seeks Alibaba's removal from the list, which prohibits Pentagon contracts starting this month and bans purchases of their products or services via third parties beginning in 2027. Other companies added to the list include Baidu, BYD, and NIO, with WuXi AppTec filing a similar lawsuit on June 11. Alibaba called the designation arbitrary and capricious, claiming it has already caused irreparable harm to its reputation and U.S. relationships.