Alibaba Challenges Pentagon’s Military Affiliation Designation

Alibaba, a prominent Chinese technology company, has filed a lawsuit against the U.S. Department of Defense. The lawsuit contests the Pentagon’s decision to classify Alibaba as affiliated with the Chinese military.

Recognized globally for its e-commerce platform, Alibaba is also an influential player in cloud computing and artificial intelligence development. The lawsuit was submitted on Tuesday in the Federal District Court of the Northern District of California. Alibaba argues that it has no connections with the Chinese military, asserting that the Pentagon’s labeling was unlawful.

Earlier this month, Alibaba was added to a list by the U.S. government naming companies that allegedly support China’s military. This list includes several strategically vital Chinese firms such as electric vehicle manufacturers, memory chip producers, robotics companies, and pharmaceutical firms. Among these companies are BYD, an E.V. manufacturer, and Unitree, a robotics firm.

The designation imposed by the Pentagon prevents Alibaba from engaging in business with it. Additionally, it limits other firms from lobbying on behalf of the companies listed. This decision could worsen the already tense relations between Washington and Beijing. Incidents between the world’s two largest economies over tariffs, trade issues, and technological supply chain control have been frequent in the past 18 months.

China’s Ministry of Commerce recently stated that the Pentagon’s actions endangered the fragile agreement reached between President Trump and China’s President Xi Jinping. According to the ministry, the U.S. defied the leaders’ prior consensus, abused its authority, and threatened global supply chain stability.

Alibaba, including Defense Secretary Pete Hegseth as a co-defendant, claims the military designation has severely damaged its reputation and resulted in loss of business partnerships, including lobbying firms. Alibaba further argues that its First Amendment rights have been violated.

“The designation does not merely impose commercial costs — it strips Alibaba of its ability to speak, to petition the government through its chosen representatives,” the lawsuit states.

The Defense Department has not immediately commented on the lawsuit.

Alibaba clarifies it is not licensed to provide products to the Chinese military nor involved in procurement programs for military purposes in China or the U.S. The company disputes the Pentagon’s interpretation of its relationship with China’s Ministry of Industry and Information Technology, emphasizing that its dealings with the ministry resemble those of any other technology company in China.

“The relationship is no different from Alibaba’s dealings with United States government agencies. A regulator is not an affiliate,” the company states.

Reporting contributions on the case were made by Xinyun Wu from Taipei. Meaghan Tobin, who focuses on Chinese business and technology reporting, is based in Taipei.