Chinese e-commerce and cloud-services giant Alibaba filed a federal lawsuit against the US Defense Department in San Jose, contesting its designation as a military-linked firm, the company announced on Wednesday.
In the complaint filed on Tuesday, Alibaba called the Pentagon’s recent blacklist inclusion arbitrary and capricious, stating the decision lacked any basis in fact or law. A company spokesperson told AFP on Wednesday that Alibaba is not a Chinese military company, nor does it participate in any military-civil fusion strategy.
The Pentagon recently released an updated blacklist featuring 80 companies and subsidiaries, including tech giant Baidu and electric vehicle manufacturer BYD, for allegedly aiding the Chinese military. Under this designation, the Pentagon cannot enter into new contracts with the listed firms or their subsidiaries starting June 30.
The lawsuit also argues that the designation violates First Amendment rights by restricting Alibaba’s ability to retain lobbying firms in the United States. According to the complaint, long-term legal advocates have already informed Alibaba that they can no longer represent the company due to the new restrictions.
Alibaba emphasized its status as a publicly traded entity with a diverse global shareholder base. Major American financial institutions, including JPMorgan, Citigroup, and BlackRock, hold dominant shares in the company.
In response to the blacklist, China retaliated on Monday by imposing strict export controls on 10 US companies involved in defense and rare earths mining. This legal and economic feud now tests bilateral relations shortly after US President Donald Trump and Chinese President Xi Jinping met in Beijing last month to stabilize ties.
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