Alibaba sued the Pentagon: the military accused the company of having ties with China

Chinese tech giant Alibaba Group is challenging in a US court the Pentagon's decision to include it on a list of companies allegedly linked to the Chinese army. According to Alibaba, such accusations are unfounded and cause serious damage to the reputation of the business. Alibaba Group, one of the world's largest players in e-commerce, cloud technologies and logistics, filed a lawsuit in federal court in San Jose (California) against the US Department of Defense on June 23, 2026, reported xrust. The reason was the inclusion of the company in the expanded “black list” of Chinese military companies (Section 1260H) on June 8.

The Pentagon believes that Alibaba is connected with Chinese government agencies, in particular through the Ministry of Industry and Information Technology and the State Assets Regulator (SASAC), and is participating in a military-civil merger strategy. The company categorically denies these claims.

“The definitions have no basis in fact or law. Alibaba is governed by an independent board of directors, none of whose members have ties to the military. Our products and services are intended for retail, logistics and enterprise IT solutions, and not for weapons, defense or intelligence,” Alibaba said.

In the lawsuit, the company wants to be removed from the list, calling the Pentagon's decision «arbitrary and unreasonable.» According to Alibaba, the inclusion is already causing “irreparable harm” to the reputation and partnerships with American companies.

What is the Pentagon list

This list does not impose blanket sanctions, but prohibits the US Department of Defense from directly concluding contracts with included firms (from June 2026) and purchasing their products even through intermediaries (from 2027). The June update also included Baidu, BYD, NIO, WuXi AppTec and other large Chinese enterprises. WuXi AppTec previously filed a similar lawsuit.

For the Russian reader: we are talking about restrictions specifically for American military purchases and contracts, and not about bans for ordinary consumers or businesses around the world.

Alibaba emphasizes that it remains a private company focused on the global market and actively works with partners, including Russia (through AliExpress and other services).

Possible consequences

The Pentagon declined to comment on the lawsuit. Experts say such lawsuits are rare, but sometimes successful—some companies have sought delisting in the past.

For Alibaba, whose shares are traded on the Hong Kong and US exchanges, reputational risks are noticeable. The company continues to develop its international business, emphasizing independence and transparency.

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Xrust Alibaba sued the Pentagon: the military accused the company of relations with China