Chinese giant Alibaba sues Pentagon over US blacklist inclusion

Washington, US, June 24, 2026 (AFP) - Technology giant Alibaba filed a federal lawsuit in the US on Monday against its designation as a “Chinese military company” by the Department of Defense, claiming the classification is arbitrary.

The lawsuit, filed in a San Francisco federal court, challenges the Pentagon's determination that Alibaba should be included on the federal list of military companies.

“The determinations are not based on fact or law,” the lawsuit states.

On June eight, the Pentagon published a new list of 80 companies and their subsidiaries that it claimed were assisting the Chinese military.

The list included technology giants Alibaba and Baidu, as well as electric vehicle manufacturer BYD.

Under this designation, from June 30, the Pentagon cannot enter into new contracts with the designated companies or their controlled subsidiaries.

The designation also restricts the company's ability to hire lobbying firms in the US, which the lawsuit claims violates its First Amendment rights.

“The effect is already being felt: advocates who have represented Alibaba for years have informed the company that they can no longer do so,” the document states.

On Monday, China imposed export controls on ten US companies involved in defence and rare earth mining, in response to Washington's blacklist.

The confrontation tests bilateral relations. It follows the meeting between US president, Donald Trump, and his Chinese counterpart, Xi Jinping, in Beijing last month, which aimed to stabilise ties between the two powers.

This article was translated to English using an AI tool.

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