On June 8, the US Department of Defense added Alibaba, along with BYD and Baidu, to a list of companies allegedly linked to China's military. Immediately thereafter, Alibaba filed a lawsuit in a federal court in San Jose, California, seeking removal from the list.
In its legal complaint, Alibaba stated: 'These decisions have no legal or factual basis. Alibaba is governed by an independent board, none of whose members are linked to the military. Our products and services serve retail, logistics, and enterprise information technology — not weapons, defense, or intelligence.'
The Pentagon explained its rationale, arguing that Alibaba is considered an 'entity contributing to China's defense industrial base through its military-civil fusion strategy due to ties with China's Ministry of Industry and Information Technology (MIIT).'
Earlier, just after the listing, an Alibaba spokesperson warned of legal action: 'Alibaba is not a Chinese military company, nor part of any military-civil fusion strategy. We will use every legal measure to challenge these mischaracterizations of our company.'
The Chinese Embassy in Washington also condemned the move as 'discriminatory.' An embassy spokesperson said: 'Chinese companies operating abroad strictly abide by local laws and regulations. The US must cease its wrongful actions and create a fair, non-discriminatory environment for Chinese enterprises.'
According to the Pentagon's updated list, the number of companies designated as 'Chinese military companies' has risen from 134 in 2025 to 188. Companies on the list will be barred from supplying 'goods, services, or technology' to the US Department of Defense starting June 30. From 2027 onward, the Pentagon will also be prohibited from signing contracts for goods or services with these entities, even indirectly through third parties. US government contracts typically represent lucrative commercial opportunities for technology firms.
