Alibaba Sues U.S. Government Over Military Blacklist

Alibaba, one of China's biggest technology and online shopping companies, has taken the U.S. government to court. The company filed a lawsuit on Tuesday after the U.S. Department of Defense added it to a list of businesses it says are connected to China's military. Alibaba strongly disagrees with that label and wants its name removed from the list.

The Department of Defense, also known as the Pentagon, expanded its blacklist on June 8. The updated list now includes 188 companies that the Pentagon believes could help China's military in some way. The U.S. government is worried that China's military might use private businesses to get new technology and resources.

Alibaba was added to the list because the Pentagon said it works closely with China's Ministry of Industry and Information Technology. Officials also said Alibaba has indirect ties to a Chinese government agency that manages state-owned businesses. The Pentagon believes these connections make Alibaba a contributor to China's military and defense industries.

Alibaba pushed back hard against these claims. The company said it is run by an independent board of directors, and none of them have any ties to the military. It also pointed out that its products and services are used for shopping, shipping, and business software — not for building weapons or gathering intelligence. 'The determinations have no basis in fact or law,' Alibaba said in a statement.

Being on the blacklist comes with serious consequences. Under a recent U.S. law, the Pentagon is not allowed to do business with companies on the list. Starting in 2027, the government also cannot buy those companies' products or services through other businesses. However, being on the list does not automatically mean a company faces official government sanctions, which are stricter penalties.

Alibaba is not the only company fighting back. Other businesses added to the list this month include the search engine company Baidu, electric carmakers BYD and NIO, and biotech firm WuXi AppTec. WuXi AppTec filed a similar lawsuit even earlier, on June 11. All of these companies are major players in Chinese industry and trade.

Alibaba warned that the label is already causing serious damage to its reputation and its relationships with American partners. The company said that for many U.S. businesses, Alibaba is the main door into the Chinese market. Calling it a military company, Alibaba argued, makes American companies afraid to work with it. The Pentagon declined to comment on the lawsuit, saying it does not discuss cases that are still in court.