Alibaba is suing US government for branding it a “Chinese military company”
Alibaba has filed a lawsuit against the US Department of Defense, seeking to overturn its designation as a "Chinese military company" after the Pentagon blacklisted the tech giant over alleged military ties that Alibaba says simply do not exist.
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Alibaba has sued the US Department of Defense, seeking to overturn its designation as a "Chinese military company."
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The company says it has no ties to the Chinese military, no defence contracts or licences, and only provides products and services to civilian and commercial customers.
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Alibaba argues the Pentagon failed to give it an opportunity to respond before adding it to the list, calling the designation unlawful and damaging to its business.
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The lawsuit comes amid broader US efforts to identify Chinese firms with alleged military links, while China accuses Washington of unfairly targeting its companies.
According to the indictment, the US government branded Alibaba a “Chinese military company” for its alleged affiliation with the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) and the Ministry of Industry and Information Technology (MIIT).
Alibaba claims that these allegations are false and have no legal basis. For starters, the company is governed by an independent board and has no military affiliation whatsoever.
In addition, Alibaba only sells its products and services to civilians and commercial businesses. Military use of its services is explicitly prohibited, and the company has no defense licenses or military procurement contracts.
Lastly, the Pentagon didn’t inform Alibaba that it was being placed on the Covered List, nor did it ask for a response. In fact, Alibaba has consistently shown the Department that it isn’t a “Chinese military company.” However, the Pentagon refused to respond to Alibaba’s written response.
The Chinese online retailer and cloud service provider alleges that the designation was “unlawful, arbitrary, and capricious” and has suffered “substantial harm” as a result of this.
Therefore, Alibaba is asking the court to declare the designation unlawful and to remove it from the US government’s Covered List.
The Pentagon hasn’t officially responded to Alibaba’s lawsuit.
Earlier this month, the Pentagon added several major Chinese tech companies to its list of Chinese military companies, which has been around since 2021 and aims to identify Chinese companies with close ties to the Chinese military.
Alibaba told the media there’s no basis for including them on the list.
The Chinese embassy accused the US of “overstretching the concept of national security” and “making discriminatory lists to go after Chinese companies.”
“The US should stop its wrong practice and create a fair, just, and non-discriminatory environment for Chinese companies,” the embassy said in a statement.
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