Alibaba Sues Pentagon after Being Dubbed a Chinese Military Company

JAKARTA - Alibaba sued the United States Department of Defense or Pentagon after its name was included in a list of companies said to have ties to the Chinese military.

Launching an Al Jazeera report, quoted Thursday, June 25, the lawsuit was filed in a federal court in San Jose, California, on Tuesday. Alibaba asked that its name be removed from the list of companies accused of being affiliated with the Chinese military.

In its lawsuit, Alibaba denied the designation. The Chinese e-commerce company said the Pentagon's decision had no legal or factual basis.

"The determination has no factual or legal basis," Alibaba wrote in its lawsuit.

Alibaba also said it was run by an independent board that had no military affiliations.

"Our products and services are developed for retail, logistics, and corporate information technology, not for weapons, defense, or intelligence," Alibaba wrote.

The US government included Alibaba on a list of companies believed to help the Chinese military on June 8. Alibaba was included along with a number of other Chinese companies, including BYD and Baidu.

After the ruling, Alibaba said it would pursue legal action.

"Alibaba is not a Chinese military company and is not part of the military-civilian fusion strategy," a company spokesperson said at the time. "We will take all available legal steps against attempts to misrepresent our company."

According to Al Jazeera's report, the Chinese Embassy in Washington DC condemned the US government's move. Beijing called the designation discriminatory against Chinese companies.

"Chinese companies operating overseas have complied with laws and regulations in the countries where they do business," said a spokesperson for the Chinese Embassy. "The United States should stop its wrong practices and create a fair, equal, and non-discriminatory business climate for Chinese companies."

The Pentagon's list of "Chinese military companies" continues to grow. The number now reaches 188 companies, up from 134 companies in 2025. The increase comes as Washington increases pressure on China's technology sector.

Starting June 30, companies on the list cannot supply goods, services, or technology to the US Department of Defense.

The restrictions will be expanded starting in 2027. The Pentagon is also prohibited from making procurement contracts for goods and services with companies on the list, including if the supplies are entered through third parties.

For many tech companies, contracts with the US government are big business and often a target.

In its statement, the Pentagon called Alibaba a contributor to the military-civil fusion strategy for China's defense industrial base. This term refers to a strategy that links the civilian and military sectors for defense purposes. The Pentagon said Alibaba fell into that category because it was considered to have an affiliation with the MIIT, China's Ministry of Industry and Information Technology.