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Alibaba challenges US government over ‘military ties’ blacklist

The e-commerce giant has launched legal action in a California court to contest its inclusion on the Pentagon's restricted list, arguing that the designation lacks factual basis

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Alibaba, the tech and e-commerce giant, has launched legal action against the US government in a San Jose federal court, challenging its inclusion on a US Department of Defence blacklist. The company was added to the roster of businesses purportedly linked to China’s military on 8 June, according to a Reuters report.

The Pentagon’s list, which now includes 188 entities, aims to restrict China’s military from accessing private sector advancements. Officials allege that Alibaba contributes to China’s defence industrial base through affiliations with the Ministry of Industry and Information Technology and the state-run asset regulator, SASAC.

Alibaba has categorically rejected these findings, stating they lack any legal or factual basis. In its court filing, the company emphasised that its board operates independently with no military connections. It further clarified that its business focuses on retail, logistics, and enterprise IT services rather than intelligence or weaponry.

The legal challenge seeks the company’s removal from the list, Reuters says. A Pentagon spokesperson declined to provide comments, citing a policy against discussing ongoing litigation.

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The blacklist carries practical consequences: under recent US legislation, the Pentagon is barred from contracting with listed companies from this month onwards, with a ban on third-party purchases of their products or services set to take effect in 2027. Inclusion does not, however, constitute formal sanctions.

Alibaba joins a growing number of businesses added to the list this month, including internet search firm Baidu, automakers BYD and NIO, and biotechnology company WuXi AppTec. The latter initiated a similar lawsuit on 11 June.

Describing the designation as “arbitrary and capricious,” Alibaba warned that the label has already caused irreparable damage to its reputation. 

The company noted that it serves as a critical gateway to the Chinese market for many American firms, and that being branded a national security threat undermines its established business relationships within the United States.