Alibaba has filed a lawsuit against the Pentagon over allegations of ties to the Chinese military

Chinese internet giant Alibaba has filed a lawsuit demanding to be removed from the list of companies that U.S. authorities consider to be linked to China’s military sector. The company stated that the Pentagon’s decision has no factual or legal basis and has already damaged its reputation.

On June 23, Alibaba filed a lawsuit in a federal court in California against the U.S. Department of Defense after the agency added the company to a list of Chinese firms that the Pentagon believes are linked to that country’s armed forces, Reuters reports.

Alibaba stated that it is governed by an independent board of directors and that its products and services are intended for e-commerce, logistics, and corporate operations, not for weapons production or defense or intelligence purposes, according to Reuters. Alibaba claims that the Pentagon did not provide sufficient evidence to include the company on the 1260H list, which the U.S. Congress mandated be maintained for organizations with alleged ties to the People’s Liberation Army of China, the Financial Times reports. The tech giant called the department’s decision “arbitrary and unfounded” and stated that U.S. authorities ignored the evidence it provided refuting any ties to the Chinese military, the FT reports.

Alibaba also states that being designated a “Chinese military company” could lead to additional restrictions from certain U.S. states and increase the risk that investors will be forced to divest their shares, which are traded on the New York Stock Exchange, the FT reports. According to the company, Alibaba remains the primary channel for many U.S. businesses to enter the Chinese market, and this designation calls into question its relationships with partners in the U.S.

In November 2026, the Financial Times reported, citing a White House memorandum based on declassified intelligence, that Alibaba had allegedly provided technological support for Chinese military operations against unspecified U.S. targets. The company categorically denied these allegations at the time.

Inclusion on the list does not mean that sanctions are automatically imposed. However, under U.S. law, the Pentagon can no longer enter into new contracts with companies on the list, and starting in 2027, it will be prohibited from purchasing their goods and services through intermediaries, Reuters reports. On June 8, the Pentagon expanded the list of alleged Chinese military-linked companies to 188 organizations. In addition to Alibaba, the list includes automakers BYD and Nio, search engine company Baidu, and biotechnology group WuXi AppTec.

WuXi AppTec has also filed a lawsuit against the U.S. government, seeking to have the company removed from the list, the Financial Times reports.

This article was AI-translated and verified by a human editor