Alibaba, a prominent technology company in China, has taken legal action against the U.S. Department of Defense. The company is disputing the Pentagon’s decision to label it as affiliated with China’s military.
Alibaba, widely known for its e-commerce operations, has also emerged as a significant player in cloud computing and artificial intelligence development in China. The company filed a lawsuit in the Federal District Court in Northern California, claiming no connection to the Chinese military and asserting that the Pentagon’s designation is unlawful.
Earlier this month, the U.S. added Alibaba to a list of companies it claims support the Chinese military. Other firms on the list include those producing electric vehicles, memory chips, robots, and pharmaceuticals. This designation bars Alibaba from business dealings with the Pentagon and limits its interactions with firms representing the listed companies.
This action could heighten tensions between the U.S. and China. It follows recent discussions between President Trump and Xi Jinping intended to ease political and economic strains. The countries’ conflicts over tariffs, trade, and technological supply chain management have been prominent in recent months.
China’s Ministry of Commerce stated that this U.S. decision threatens the tentative agreement reached by the two leaders. It accused the U.S. of overriding their consensus, abusing power, and threatening global supply chain stability.
Alibaba included Defense Secretary Pete Hegseth in its lawsuit. The company claims the designation has damaged its reputation and business relationships, including those with lobbying firms.
The lawsuit also argues that the Pentagon’s actions violate Alibaba’s First Amendment rights. It claims the designation not only imposes commercial harm but also limits Alibaba’s ability to communicate and petition the government.
The Defense Department has yet to comment on the lawsuit. Alibaba maintains that it does not supply products to the Chinese military and is not involved in military procurement processes in either China or the U.S.
Furthermore, Alibaba contends that the Pentagon misinterpreted its relationship with China’s Ministry of Industry and Information Technology, which regulates internet activities in China. According to Alibaba, its interaction with the ministry is akin to any tech company’s dealings with U.S. government agencies and does not indicate an affiliation.
Contributions by Xinyun Wu in Taipei. Reporting by Meaghan Tobin, who covers Asian business and technology, with a focus on China, based in Taipei.