Alibaba Sues US Government After Being Added to Military Companies List

(Washington, June 23, CNA, Reuters) Chinese tech and e-commerce giant Alibaba has sued the US Department of Defense, according to court documents filed today, because it is dissatisfied with being included by the US in the "Chinese military companies" blacklist.

Reuters reported that Alibaba is accused of being a "contributor to the civil-military fusion of China's defense industrial base" through its association with China's Ministry of Industry and Information Technology. The Pentagon also stated that Alibaba has an indirect relationship with China's State-owned Assets Supervision and Administration Commission.

In its lawsuit, Alibaba stated: "These determinations are baseless in fact or law. Alibaba is managed by an independent board of directors, none of whom have military backgrounds."

Alibaba stated: "The company's products and services are designed for retail, logistics, and enterprise IT, not for weapons, defense, or intelligence purposes."

The US Department of Defense did not immediately respond to a request for comment.

Other companies added to the list by US authorities this month include search engine company Baidu, automakers BYD and Nio, and biotechnology company Wuxi AppTec. The US believes these companies are assisting the Chinese military.

Wuxi AppTec filed a lawsuit similar to Alibaba's on June 11.

The lawsuit seeks to remove Alibaba from the list.

A Pentagon spokesperson declined to comment, stating that the agency does not comment on ongoing litigation.

Under recent US law, the Pentagon is prohibited from signing contracts with companies on the blacklist starting this month, and from purchasing products or services from these companies through third parties starting in 2027. However, being added to the list does not equate to formal sanctions.

Alibaba called the determination "arbitrary and capricious" and stated that the labeling has caused irreparable damage.

Alibaba pointed out: "For many American companies, Alibaba is the main gateway to the Chinese market. Labeling Alibaba as a 'Chinese military company' is to brand it as a tool of the Chinese military and a threat to US national security."

"This determination... directly damages Alibaba's reputation and casts a shadow over every US partnership the company maintains." (Compiled by Li Peishan) 1150624

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