WASHINGTON — Chinese technology company Alibaba has filed a lawsuit against the U.S. Department of Defense, challenging its inclusion on a Pentagon list that identifies firms believed to have links to China’s military.
The lawsuit, filed in federal court in California, asks a judge to remove Alibaba from the list. The company argues that the Defense Department lacked sufficient evidence and failed to provide a fair review process before making the designation.
Alibaba said the decision has already damaged its reputation and affected relationships with business partners and investors in the United States.
The case marks the latest legal battle between Chinese companies and U.S. authorities as tensions between Washington and Beijing continue over national security, technology, and trade.
Alibaba Challenges Pentagon Decision
Congress directed the Pentagon in 2021 to create a list of companies believed to be connected to China’s military, security services, or defense-industrial sector. Since then, the list has expanded to include dozens of Chinese technology, manufacturing, and defense-related firms.
According to court filings, the Defense Department added Alibaba to the list on June 8.
The Pentagon claims Alibaba has ties to China’s state-owned Assets Supervision and Administration Commission. It also argues that the company supports China’s defense industrial capabilities through links to the Ministry of Industry and Information Technology.
Alibaba rejected those allegations.
In its court filing, the company said it operates independently under its own board structure and does not hold military licenses or certifications. It also argued that government regulation does not prove military affiliation.
“A regulator is not an affiliate,” the company stated in its petition.
Company Says Listing Has Hurt Business Operations
Alibaba told the court that the designation has already affected its business activities in the United States.
The company said its success depends heavily on trust from customers, investors, and commercial partners. As a result, it argued that reputational damage can have significant financial consequences.
Although the Pentagon list does not automatically trigger broad sanctions, companies included on it can face restrictions involving U.S. defense-related contracts. They may also receive greater scrutiny from government agencies and investors.
Other Chinese Companies Are Also Fighting Designations
Alibaba is not alone in challenging the Pentagon’s classification process.
WuXi AppTec, a pharmaceutical research and manufacturing services company, has also filed a lawsuit seeking removal from the same list.
Earlier court filings showed that WuXi AppTec believes the designation was based on unsupported allegations and political pressure. The company said the decision has caused serious and potentially long-term damage to its business.
The Pentagon maintains that WuXi AppTec has indirect links to Chinese state entities and organizations connected to national defense activities.
That separate legal dispute remains ongoing in federal court in Washington, D.C.
U.S.-China Frictions Continue
The lawsuits come as the United States and China remain at odds over trade, technology, military competition, and national security concerns.
The Pentagon’s current list includes 188 entities, ranging from state-owned defense contractors to private-sector technology firms.
Chinese officials have repeatedly criticized the designations. Meanwhile, several companies on the list argue that the government has not provided sufficient evidence to support the classifications.
Earlier this week, Beijing announced sanctions against 10 U.S. military-related companies. The move highlighted continuing strains between the two countries despite efforts to stabilize diplomatic relations.
Previous Legal Challenge Failed
Not every company has succeeded in challenging the Pentagon’s designations.
Last year, a federal judge ruled against DJI Technology, a Chinese drone manufacturer that sought removal from the military company list.
DJI has appealed the ruling. The outcome could influence how courts handle similar cases involving Alibaba and other Chinese firms.
The latest lawsuits may help determine how far the Defense Department can go when identifying military affiliations under U.S. law. They could also clarify the level of evidence required to support such designations in future cases.
Tags: Alibaba, U.S. Department of Defense, China, Pentagon, U.S.-China Relations, National Security, WuXi AppTec, Chinese Military Companies, Technology Industry, Defense Policy, DJI Technology, Federal Court
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