SouthernWorldwide.com – Chinese technology conglomerate Alibaba has initiated a lawsuit against the Pentagon, challenging its designation as a company with ties to the Chinese military.
The tech giant stated on Wednesday that this classification is “arbitrary and capricious,” according to a report by AFP.
The lawsuit, officially filed on Tuesday in federal court in San Jose, California, directly disputes the Pentagon’s decision to include Alibaba on a recently released list of companies allegedly connected to the Chinese military.
Alibaba contends that these determinations lack any grounding in fact or law.
Other prominent Chinese firms, including BYD and Baidu, have also previously stated that their inclusion on the list is unfounded. The Chinese Embassy has criticized the U.S. for what it describes as an overextension of national security concepts and the creation of discriminatory lists targeting Chinese companies.
A spokesperson for Alibaba emphasized that the company is neither a Chinese military entity nor a participant in any military-civil fusion strategy. The spokesperson further stated that the decision to place Alibaba on the list is arbitrary and capricious, prompting the lawsuit to demand its removal.
The Pentagon’s list currently comprises 80 companies and their subsidiaries. This roster also features other well-known entities such as electric vehicle manufacturer BYD and search engine giant Baidu.
Under this designation, the Pentagon is prohibited from entering into new contracts with the listed companies or their controlled subsidiaries, effective from June 30.
The designation also imposes restrictions on the companies’ ability to engage lobbying firms in the United States. Alibaba’s lawsuit argues that these restrictions infringe upon First Amendment rights.
The complaint highlights that the impact of this designation is already being felt, with long-standing advocates for Alibaba informing the company that they can no longer represent them.
In its legal filing, Alibaba asserts its identity as a publicly traded e-commerce and cloud services provider. The company points to its diverse shareholder base, which is reportedly dominated by major American financial institutions, including J.P.Morgan, Citigroup, and BlackRock.
In a retaliatory move on Monday, China implemented export controls targeting ten U.S. companies involved in the defense and rare earths mining sectors.
This escalating dispute casts a shadow over bilateral relations, particularly following the meeting between President Trump and his Chinese counterpart Xi Jinping in Beijing last month, which was aimed at stabilizing ties.
