Alibaba, Chinese e-commerce and tech giant, has filed a lawsuit against the United States government, seeking removal from a Pentagon blacklist that labels the company as having links to China’s military, a designation the firm says is unfounded and damaging.
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The lawsuit was filed in the federal court in San Jose, California, after the US Department of Defense earlier this month expanded its list of so-called Chinese military companies to 188 entities. The list is compiled under a US law aimed at identifying firms that Washington believes could support China’s armed forces through commercial or technological cooperation.
Alibaba was added to the list on the grounds that it contributes to China’s “military-civil fusion” strategy, a policy under which Beijing encourages closer ties between private industry and the defence sector. The Pentagon cited Alibaba’s regulatory connections to China’s Ministry of Industry and Information Technology and indirect links to the state asset regulator SASAC.
In its court filing, Alibaba rejected those claims, arguing that its governance structure is independent and that none of its board members have military affiliations. The company said its operations focus on e-commerce, cloud computing, logistics and enterprise software, and do not involve defence, intelligence or weapons development.
Alibaba said the designation has already caused reputational and commercial harm, particularly in the United States, where it maintains partnerships with businesses that could be affected by restrictions tied to the blacklist.
While inclusion on the list does not amount to formal economic sanctions, it carries tangible consequences. US law bars the Pentagon from contracting with listed companies beginning later this month, and from 2027 prohibits the defence department from purchasing their goods or services indirectly through third parties.
The company also argued that the designation process lacked transparency, saying it had attempted to engage with US officials to address concerns but was placed on the list without prior notice or an opportunity to respond.
The Pentagon declined to comment on the lawsuit, citing its policy of not discussing ongoing litigation.
Alibaba is not alone in challenging the designation. Several major Chinese firms were added to the blacklist in the same update, including technology company Baidu, electric-vehicle makers BYD and Nio, and pharmaceutical firm WuXi AppTec, which has also filed a legal challenge.
The case comes amid heightened US scrutiny of Chinese technology firms, driven by concerns in Washington over national security, data access and the potential military use of civilian technologies. Beijing has repeatedly criticised such measures as discriminatory and politically motivated.
Alibaba is seeking a court order to overturn its designation and block the enforcement of restrictions tied to the blacklist.
