Alibaba has filed a lawsuit against the U.S. government over its inclusion on a list of military companies — Reuters
Chinese tech giant Alibaba has filed a lawsuit against the U.S. government following the Pentagon’s decision to add the company to a list of firms allegedly linked to China’s military sector. The company stated that this decision is unfounded and damages its reputation and business.
The lawsuit was filed in federal court in San Jose, California. It was prompted by the U.S. Department of Defense’s decision to include Alibaba on the list of so-called “Chinese military companies.” In early June, the Pentagon expanded this list to 188 organizations, tightening control over Chinese corporations that, according to Washington, may be linked to the PRC’s defense sector.
The U.S. fears that the Chinese government could use the achievements of private businesses to develop military technologies and strengthen the country’s defense capabilities.
The U.S. Department of Defense claims that Alibaba may be involved in the “military-civilian integration” policy, which involves the use of civilian technologies and resources for military purposes. Among the Pentagon’s arguments are the company’s ties to China’s Ministry of Industry and Information Technology, as well as indirect contacts with the state agency SASAC, which manages state-owned assets.
Alibaba categorically denies these allegations. The company emphasizes that its activities are focused on e-commerce, logistics, and digital solutions for business, rather than on defense or intelligence projects.
“Such conclusions have no factual or legal basis,” company representatives stated, emphasizing that Alibaba’s board of directors is independent and has no ties to military structures.
Although inclusion on the list does not automatically trigger sanctions, it imposes significant restrictions on the companies. Under U.S. law, the U.S. Department of Defense can no longer enter into contracts with companies on the list. Starting in 2027, the ban will also extend to the procurement of their goods and services through intermediaries.
Alibaba believes that this designation seriously damages its international reputation and jeopardizes its cooperation with U.S. partners.
The company notes that for many U.S. businesses, Alibaba is a key channel for entering the Chinese market. Therefore, designating it as a company linked to the PRC’s military structures could negatively impact business relationships and customer trust.
Along with Alibaba, other major Chinese companies have also been added to the Pentagon’s updated list. Among them are the search engine Baidu, automakers BYD and NIO, and the biotechnology corporation WuXi AppTec.
The latter has already filed a similar lawsuit against the U.S. government. All of these companies deny allegations of ties to Chinese military entities and are attempting to challenge the U.S. government’s decision in court.
Pentagon officials are currently refraining from comment, citing the fact that the case is pending in court, Reuters reports.
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