Alibaba (HKG:9988) has sued the U.S. government seeking removal from a Pentagon list of companies alleged to have links to China's military, according to a court filing Tuesday.
The lawsuit, filed in federal court in San Jose, California, challenges the U.S. Department of Defense's decision to add Alibaba to its list of "Chinese military companies" earlier this month.
The Pentagon alleged that Alibaba is a "military-civil fusion contributor" to China's defense industrial base through ties to the Ministry of Industry and Information Technology and an indirect affiliation with SASAC, China's state-owned assets regulator.
Alibaba said the designation has "no basis in fact or law," arguing that it is governed by an independent board and that its products and services are focused on retail, logistics, and enterprise technology rather than military applications.
The Chinese technology giant argued that the designation exposes it to broader U.S. restrictions and state divestment initiatives, while fueling calls to remove it from U.S. exchanges and supply chains.
The company said the designation has already caused reputational and commercial harm by undermining confidence among its U.S. partners.