Alibaba challenges Pentagon blacklist in US federal court
The retailer’s lawsuit seeks removal from the US Department of Defense’s restricted list, which bans listed firms from supplying goods or services to the US military.
Alibaba has initiated legal proceedings against the United States Department of Defense in a federal court in San Jose, California, contesting its inclusion on the Pentagon’s blacklist of Chinese military companies. The lawsuit, filed on Tuesday, directly challenges the designation made on June 8, which the retailer argues is unsupported by either fact or law.
In its court filing, the e-commerce giant asserted that it is governed by an independent board with no members holding military affiliations. The company emphasised that its operations are strictly confined to retail, logistics, and enterprise information technology, explicitly denying involvement in weapons, defence, or intelligence sectors.
The legal action aims to secure Alibaba’s removal from the restricted list, which prohibits designated entities from providing goods, services, or technology to the US military. The designation carries significant commercial implications, as US government contracts represent lucrative opportunities for major technology firms. Under current regulations, listed companies are barred from supplying the Department of Defense as of June 30.
The Pentagon maintains that Alibaba contributes to China’s defence industrial base through its affiliation with the Ministry of Industry and Information Technology (MIIT). In a statement, the defence department accused the company of being a “military-civil fusion contributor,” a policy framework that integrates civilian and military sectors in China, which Washington views as a national security concern.
Alibaba’s inclusion marks a escalation in US pressure on the Chinese tech sector, with the blacklist now comprising 188 firms, an increase from 134 in 2025. The list also includes other major Chinese technology companies such as BYD and Baidu. Starting in 2027, the restrictions will tighten further, prohibiting the Pentagon from contracting for goods and services from these groups, even if supplied through third parties.
China’s embassy in Washington, DC, condemned the designations as discriminatory, urging the US to cease what it described as wrongful practices. An embassy spokesperson stated that Chinese companies operating overseas strictly adhere to local laws and called for a fair, just, and non-discriminatory environment for Chinese businesses in the United States.
