Alibaba Challenges Pentagon Over Military Company Label

The Chinese e-commerce giant Alibaba has taken legal action against the Pentagon in response to its recent designation as a company with alleged links to the Chinese military. The lawsuit was filed on Tuesday, challenging the Defense Department’s decision to place Alibaba on a list that bars the company from securing U.S. defense contracts.

In early June, the Pentagon categorized Alibaba among non-state-owned Chinese entities connected to the Beijing military. The Defense Department claims that Alibaba is involved in ‘military-civil fusion’ contributing to China’s defense sector because of its affiliation with China’s Ministry of Industry and Information Technology (MIIT), which oversees technology and industrial policies in China.

Alibaba contests the Pentagon’s decision, filing a complaint in a federal court in San Jose, Calif. According to the complaint, the list, mandated by congress in 2021 to identify firms perceived as threats, has inflicted significant damage on the company. Reuters reports Alibaba stating, “The determinations have no basis in fact or law,” and insisting, “Alibaba is governed by an independent board, none of whom has any military affiliation.” The company emphasizes that its products and services focus on retail, logistics, and enterprise information technology, not defense, weapons, or intelligence.

When approached for comment by The Hill, the Pentagon opted not to respond. The updated list now includes 188 Chinese entities, which is an increase from last year’s 130. These firms can still operate in the U.S., and the designation does not automatically impose sanctions.

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Essential Reads

Policy’s impact on defense and security:

• The Senate approved a resolution directing President Trump to withdraw U.S. forces from hostilities against Iran. Four GOP senators broke ranks, voting 50 to 48 to approve the resolution.
• Senator John Fetterman (D-Pa.) joined Republicans in voting against the measure to stop the war with Iran.
• The Senate’s defense bill aims to protect retired service members who criticize the government, amid a battle over Sen. Mark Kelly’s criticisms of the Trump administration with Defense Secretary Pete Hegseth.

In Other News

• Senator Mark Warner (D-Va.) introduced a bill requiring Senate-confirmed acting DNIs following President Trump’s pick.

Events in and around the defense world:

• The Cato Institute is hosting a conference on “Nuclear Proliferation in US Grand Strategy” tomorrow at 10 a.m. ET.
• The Carnegie Endowment hosts an event on “Democracy, the Military, and America’s Future” with Admiral McRaven tomorrow at 10 a.m. ET.
• The Center for a New American Security is discussing “China’s AI Capabilities and Risks to U.S. National Security” tomorrow at 3 p.m. ET.

Trending Today

• A former U.S. Olympian is arrested for allegedly vandalizing the Lincoln Memorial Reflecting Pool.
• Sen. Thom Tillis criticizes U.S. Attorney Jeanine Pirro for threats of prosecution related to vandalism at the Lincoln Memorial.