Alibaba Challenges US Military Blacklist in Lawsuit
Tech giant says blacklisting is unlawful, harms business operations and infringes constitutional rights
San Jose, Jun 24: Alibaba Group has filed a federal lawsuit against the US Department of Defense, challenging its designation as a “Chinese military company” and arguing that the decision is unsupported by facts and violates due process protections.
The complaint, lodged in a federal court in San Jose on Tuesday, seeks to overturn the Pentagon’s determination that the Chinese e-commerce and cloud computing giant should be included on a list of firms allegedly linked to China’s military establishment.
Alibaba contended that the designation was arbitrary and unlawful, stating that the government had failed to provide a factual or legal basis for its decision.
Earlier this month, the Pentagon expanded its blacklist to include 80 companies and subsidiaries it claims support China’s military capabilities. Among the newly added firms were Alibaba, Baidu and electric vehicle manufacturer BYD.
Under US law, the designation bars the Defense Department from entering into new contracts with listed companies and their controlled subsidiaries from June 30 onward. Alibaba argues the move has already affected its operations, including its ability to engage lobbying and advocacy services in the United States.
According to the lawsuit, representatives who had worked with the company for years informed Alibaba that they could no longer provide services because of the designation.
The company also highlighted its ownership structure, noting that it is publicly traded and has a broad shareholder base that includes major US financial institutions such as JPMorgan, Citigroup and BlackRock.
The legal challenge comes amid renewed friction between Washington and Beijing. Earlier this week, China imposed export controls on 10 US firms involved in defence and rare-earth mining after the latest Pentagon blacklist was announced.
The dispute presents a fresh test for bilateral relations following last month’s meeting in Beijing between US President Donald Trump and Chinese President Xi Jinping, where both sides sought to stabilise ties despite ongoing strategic and economic tensions.
