Alibaba, a prominent Chinese technology company, has filed a lawsuit against the U.S. Department of Defense. The suit contests the Pentagon’s decision to categorize Alibaba as affiliated with China’s military. Known globally for its e-commerce services, Alibaba also excels in cloud computing and artificial intelligence advancements.
On Tuesday, Alibaba filed the lawsuit in the Federal District Court in Northern California, asserting no military connections and alleging unlawful actions by the Pentagon. The U.S. recently listed Alibaba among companies purportedly supporting China’s military, joining other significant firms such as BYD and Unitree.
This classification prevents Alibaba from engaging in business with the Pentagon. Moreover, it limits the Pentagon’s interactions with firms employing lobbyists for these listed companies. The decision threatens to escalate tensions between Washington and Beijing, following recent talks between President Trump and Xi Jinping aimed at stabilizing bilateral relations.
China’s Ministry of Commerce expressed that the Pentagon’s actions undermined a delicate agreement between the leaders, accusing the U.S. of misusing authority and endangering global supply chain stability. Alibaba, citing the reputational damage and loss of business ties, also implicated Defense Secretary Pete Hegseth.
The lawsuit further claims the designation infringes on Alibaba’s First Amendment rights by affecting its communication and lobbying abilities. In its defense, Alibaba clarified it’s not authorized for military supply and participates neither in Chinese nor U.S. military procurement.
Concerning ties with China’s Ministry of Industry and Information Technology, Alibaba stated these interactions are standard for any tech company operating in China, akin to business dealings with U.S. government agencies.
Defense Department representatives have yet to comment on these developments.
Xinyun Wu contributed reporting from Taipei. Meaghan Tobin covers business and tech stories in Asia with a focus on China and is based in Taipei.
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