Alibaba Challenges U.S. Military Affiliation Designation

Alibaba, a major player in China’s technology sector, has initiated legal action against the U.S. Department of Defense. The firm disputes the Pentagon’s claim that it is associated with China’s military.

Globally recognized for its e-commerce, Alibaba also excels in cloud computing and artificial intelligence. In its lawsuit, filed in the Northern District of California, the company asserts that it lacks any military ties. Alibaba contends that the Pentagon’s designation breaches legal standards.

Earlier in June, Alibaba was included on a U.S. list of companies allegedly supporting China’s military. This list encompasses key Chinese companies in electric vehicles, memory chips, robotics, and pharmaceuticals, such as BYD and Unitree.

The Pentagon’s decision limits Alibaba’s business opportunities with the Department of Defense. Additionally, firms that represent companies on the list face business restrictions.

“The U.S. government’s action casts doubt on the fragile truce between Presidents Trump and Xi Jinping, who met to ease economic tensions,” stated China’s Ministry of Commerce.

The lawsuit also implicates Defense Secretary Pete Hegseth, with Alibaba alleging that its reputation and partnerships have suffered due to the designation.

Alibaba argues that the Pentagon’s action infringes on its First Amendment rights. The company believes the designation goes beyond commercial impact by hindering its freedom to communicate and petition the government.

The Defense Department has yet to comment on the matter.

Alibaba clarified that it is not authorized to supply products to China’s military nor participates in military procurement in either China or the U.S.

Furthermore, Alibaba insists that its relationship with China’s Ministry of Industry and Information Technology, a primary internet regulator, is comparable to the interactions of any tech company with government agencies.

Reporters Xinyun Wu and Meaghan Tobin contributed to the coverage of this development from Taipei, focusing on business and technology in Asia.