Alibaba Sues U.S. Department of Defense Over Chinese Military Blacklist Designation

Chinese e-commerce and technology giant Alibaba sued the U.S. Department of Defense over its inclusion on a blacklist identifying companies with alleged ties to the Chinese military, filing in a federal court in San Jose, California.

“The Chinese e-commerce company Alibaba has filed a lawsuit against the United States Department of Defense for labelling the retailer a “Chinese military company””

Al Jazeera

Alibaba said the Pentagon added it to the list of firms allegedly linked to the People’s Liberation Army without providing sufficient evidence or explanation, and argued the designation violates constitutional due process and free speech rights.

Al Jazeera

The lawsuit follows the Pentagon’s June 8 update to its so-called 1260H list, which added Alibaba along with Baidu and automaker BYD, and the dispute is framed as part of ongoing trade and technology tensions between Washington and Beijing.

The Hill reported that the updated list identified 188 Chinese entities, an uptick from last year’s 130, while also noting that the designation does not mean formal sanctions would be imposed.

In its complaint, Alibaba argued that the Pentagon’s determinations have “no basis in fact or law,” and said its products and services are built for retail, logistics, and enterprise information technology rather than weapons, defense, or intelligence.

Alibaba’s filing contends that the Pentagon’s move violated constitutional due process and the company’s right to free speech, while the company also argued that the Pentagon added Alibaba “without providing substantial evidence or explanation.”

The South China Morning Post reported that on June 9 the Department of Defence added Alibaba, electric vehicle makers BYD and Nio, search engine Baidu, robot maker Unitree Robotics, networking equipment maker TP-Link and other Chinese companies in artificial intelligence, biotechnology and the solar sector to a list of “Chinese military companies”.

Crypto Briefing

The Hill said the Defense Department argued Alibaba is a “military-civil fusion contributorto the Chinese defense industrial base because it is affiliated with [China’s Ministry of Industry and Information Technology (MIIT)],” and it also said the placement on the list barred Alibaba from getting U.S. defense contracts.

Alibaba told Reuters, as quoted by The Hill, that “The determinations haveno basisin fact or law,” and added that “none of whom has any military affiliation” on its independent board.

When reached for comment by The Hill, the Pentagon declined to comment, and the agency’s position in the coverage was that the list was formed in 2021 by a congressional mandate to identify Chinese firms believed to be a possible threat.

Beyond the courtroom filing, the sources describe concrete limits tied to the Pentagon’s list, including that under U.S. law the Pentagon cannot contract with companies on the blacklist starting this month and cannot buy their products or services via third parties beginning in 2027.

“Business Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis Alibaba sues Pentagon over 'Chinese military company' designation by Agencies ISTANBUL Jun 23, 2026 - 8:19 pm GMT+3 Edited By Nurbanu Tanrıkulu Kızıl by Agencies Jun 23, 2026 8:19 pm Edited By Nurbanu Tanrıkulu Kızıl Chinese technology and e-commerce giant Alibaba Group has sued the U”

Daily Sabah

GMA Network, citing Reuters, said the Pentagon expanded its blacklist of alleged “Chinese military companies” on June 8 to 188 entities, reflecting concern that China’s military could tap the country’s private sector for technological advances.

The Hill also said the firms can still do business in the U.S. and that the designation does not mean formal sanctions would be imposed, even as it described the list as a congressional-mandated roster formed in 2021.

Al Jazeera reported that the Pentagon’s list of designated “Chinese military companies” has risen to include 188 firms, up from 134 in 2025, and said companies included on the list cannot provide “goods, services or technology” to the Department of Defense as of June 30.

The Al Jazeera account also quoted the Pentagon’s rationale that Alibaba is “a military-civil fusion contributor to the Chinese defense industrial base because it is affiliated with MIIT,” while Alibaba’s lawsuit seeks removal of its name from the growing list.