Alibaba sues US for being linked to Chinese military

ALIBABA, the Chinese technology and e-commerce giant, sued the US government on Tuesday (Jun 23) over being placed on a list of businesses from China that the Department of Defense linked to that country’s military.

The complaint was filed in the San Jose, California, federal court after the Pentagon expanded its blacklist of alleged “Chinese military companies” on Jun 8 to 188 entities, reflecting concern that China’s military could tap that country’s private sector for advancements.

Alibaba was accused of being a “military-civil fusion contributor to the Chinese defence industrial base” through an affiliation with China’s Ministry of Industry and Information Technology.

The Pentagon also said that Alibaba is indirectly affiliated with China’s state asset regulator, known as Sasac.

“The determinations have no basis in fact or law,” Alibaba said. “Alibaba is governed by an independent board, none of whom has any military affiliation,” it continued. “Its products and services are built for retail, logistics, and enterprise information technology – not weapons, defence, or intelligence.”

The lawsuit seeks Alibaba’s removal from the list. A Pentagon spokesperson declined to comment, saying the agency does not discuss pending litigation.

Baidu, BYD also added to list

Under recent US law, the Pentagon cannot contract with companies on the blacklist starting this month, and cannot buy their products or services via third parties beginning in 2027.

Inclusion on the list does not mean formal sanctions.

Other businesses joining the list this month include Internet search company Baidu, automakers BYD and NIO, and biotechnology company WuXi AppTec. WuXi filed a lawsuit similar to Alibaba’s on Jun 11.

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Alibaba called its designation arbitrary and capricious, and said it has already caused irreparable harm.

“For many American businesses, Alibaba is the principal gateway to the Chinese market,” it said. “To label Alibaba a ‘Chinese military company’ is to brand it an instrument of the Chinese military and a threat to US national security. That designation ... directly impugns Alibaba’s reputation and casts a shadow over every US relationship the company maintains.” REUTERS