Alibaba Sues US Government Over Pentagon's 'Chinese Military' Blacklist

Chinese e-commerce giant Alibaba has sued the United States government after being placed on a Pentagon list of companies allegedly linked to the Chinese military. The lawsuit was filed in a federal court in San Jose, California, on Tuesday local time. The legal action follows the Pentagon’s expansion of its blacklist of suspected Chinese military companies to 188 entities on 8 June. The expanded list reflects US government concerns that China’s military could leverage the private sector to support its technological and defence development. In the court documents, the Pentagon accused Alibaba of contributing to China’s military-civil fusion for the nation’s defence industrial base through ties with the Ministry of Industry and Information Technology. The Pentagon also claimed Alibaba has an indirect affiliation with China’s state asset regulator, known as SASAC. Alibaba has denied the allegations. ‘The designation lacks any factual or legal basis,’ Alibaba stated, as reported by Reuters on Wednesday. The company asserted that its operations have no connection to the Chinese military. ‘Alibaba is governed by an independent board of directors, none of whom have military affiliations,’ the company continued. ‘Our products and services are built for retail, logistics, and enterprise information technology, not for weapons, defence, or intelligence.’ Through the lawsuit, Alibaba is seeking the removal of its name from the Pentagon blacklist. A Pentagon spokesperson declined to comment on the lawsuit, citing a policy of not discussing ongoing legal proceedings. Other major Chinese firms added to the list this month include internet search company Baidu, electric vehicle manufacturers BYD and NIO, and biotechnology firm WuXi AppTec. WuXi AppTec also filed a similar lawsuit against the US government on 11 June. Alibaba described the Pentagon’s designation as arbitrary and irrational, stating the decision has caused irreparable harm. ‘For many American companies, Alibaba is the primary gateway to the Chinese market,’ the company said. ‘Labelling Alibaba a Chinese military company is to brand it as an instrument of the Chinese military and a threat to US national security.’ Alibaba added that the status directly damages its reputation and casts a shadow over all its business relationships in the United States.