Chinese technology giant Alibaba has filed a lawsuit against the US Department of Defense after being designated a military-linked company by the Pentagon.
The lawsuit, filed in a federal court in San Jose, California, challenges the Pentagon’s decision to place Alibaba on a blacklist of firms it alleges have connections to the Chinese military.
Alibaba described the designation as unfounded, arguing in its court filing that the determination has “no basis in fact or law”. The company maintains that it is neither a Chinese military company nor involved in any military-civil fusion strategy.
A spokesperson for Alibaba told AFP that the decision was “arbitrary and capricious” and said the company is seeking removal from the list through legal action.
The Pentagon’s updated blacklist, released earlier this month, includes 80 companies and subsidiaries that US authorities say support China’s military. The additions included Chinese search giant Baidu and electric vehicle manufacturer BYD.
Under the designation, the Pentagon will be prohibited from entering new contracts with listed companies and their controlled subsidiaries from June 30. The restrictions also limit the ability of affected firms to hire lobbying organisations in the United States.
Alibaba’s lawsuit argues that these restrictions infringe on constitutional rights, including protections under the First Amendment. The company said some long-time advocates had already informed it they could no longer represent the firm because of the designation.
In its filing, Alibaba highlighted its status as a publicly traded company with a shareholder base that includes major US financial institutions such as [JPMorgan Chase](https://www.jpmorganchase.com?utm_source=chatgpt.com), [Citigroup](https://www.citigroup.com?utm_source=chatgpt.com) and [BlackRock](https://www.blackrock.com?utm_source=chatgpt.com).
The dispute comes amid renewed tensions between the world’s two largest economies. Earlier this week, China announced export controls on 10 US companies involved in defence and rare earth mining in response to the Pentagon’s blacklist.
The latest legal challenge is another test of relations between China and the United States following a recent meeting between US President Donald Trump and Chinese President Xi Jinping aimed at stabilising bilateral ties.
