Alibaba sues Pentagon over Chinese military company designation
The Chinese e-commerce group says the US Defense Department wrongly linked it to China’s military and is seeking removal from a Pentagon list.
By Sofia Marchetti · World Affairs Correspondent
3 min read
Alibaba has sued the US Department of Defense over its decision to label the Chinese e-commerce group a “Chinese military company,” according to Al Jazeera and Reuters. The case matters because the designation can restrict business with the Pentagon and adds to US pressure on major Chinese technology firms.
In a Tuesday court filing, Alibaba challenged the Defense Department’s finding and said it has no affiliation with China’s military, Al Jazeera and Reuters reported. The company filed the case in federal court in San Jose, California, and is asking for its name to be removed from the Pentagon list.
According to the lawsuit cited by Al Jazeera and Reuters, Alibaba said the US determinations lack a factual or legal basis. The company also said its board is independent and that none of its directors has a military affiliation.
Alibaba argued in the filing that its business is focused on retail, logistics and enterprise information technology rather than weapons, defense or intelligence, according to Al Jazeera and Reuters.
Designation followed June 8 list update
The Defense Department added Alibaba to its list on June 8, alongside other Chinese companies including BYD and Baidu, Al Jazeera and Reuters reported. Alibaba said after the designation that it would use legal options to challenge the move.
A company spokesperson said at the time that Alibaba was not a Chinese military company and was not part of China’s military-civil fusion strategy, according to Al Jazeera and Reuters. The spokesperson said the company would take legal action against efforts it viewed as misrepresenting its business.
China’s embassy in Washington criticized the US designations as discriminatory, Al Jazeera and Reuters reported. An embassy spokesperson said Chinese firms operating abroad have followed host-country laws and urged the United States to provide what the spokesperson called a fair and non-discriminatory environment for Chinese companies.
Pentagon cites links to Chinese ministry
In a June 8 statement cited by Al Jazeera and Reuters, the Pentagon said Alibaba was a contributor to China’s defense industrial base through military-civil fusion because of its affiliation with China’s Ministry of Industry and Information Technology, known as MIIT.
The Pentagon list has grown to 188 companies from 134 in 2025, according to Al Jazeera and Reuters. The increase comes as the United States places more scrutiny on China’s technology sector.
Companies on the list are barred from providing goods, services or technology to the Defense Department as of June 30, Al Jazeera and Reuters reported. Starting in 2027, the Pentagon will also be barred from contracting for goods and services from listed companies, including when those goods or services come through a third party.
US government contracts are considered valuable commercial opportunities for technology companies, according to Al Jazeera and Reuters. Alibaba’s lawsuit seeks to prevent the Defense Department label from limiting its access to that market and from publicly tying the company to China’s military.
This story draws on original reporting from Al Jazeera.